Brian Acker, CABristol Myers SquibbBMYWEAK BUYDec 27, 2002

Down 23% in the past 6 months. Pays a 5% dividend. Be patient and give the current CEO a chance to turn things around.

Big on immune oncology and cardio. Technically doesn't look great, but eventually "the train will come along and collect the mail bag". Makes a ton of $$ in NA. Wide moat. Concerns about pipeline, but he thinks it's pretty good. Limited downside. Yield is 4.9%.

Good pricing power. Because products are so specialized, FDA puts them on sort of a fast track.

In the past quarter, They recently bought 3 companies, including Mirati, a small oncology company, and Karuna who may develop a wonder drug to treat schizophrenia. BMY needs to buy companies, because their top 3 drugs face steep patent cliffs, like a blood-clot drug, accounting for over 61% of 2023 (Jan-Sept)'s sales.

Disagrees with today's downgrade. BMY will produce $75 billion free cash flow over the next 5 years, which will transform them.

They don't have the drug pipeline that they used to have. Also, don't buy a stock only for the dividend.

Investors have given up on drug stocks, including BMY, but he won't. You must own a drug stock in your portfolio.

It has some real challenges from 2026 to 2030 when some of their drugs will come off patents. They will need to fill their pipeline. This is reflected in the 8X earnings multiple. As for Amgen, it has defensive characteristics but we need to make sure they execute their plans.

Trades under 9x earnings, has a ton of free cash flow and are buying back stock.

They have zero economic sensitivity (good) and has enough drugs in the pipeline to beat future estimates. Always pays an above-average dividend.