Pfizer Inc (PFE)

If you exclude the impact of the Hosperian Fusion System divestiture, revenues for the quarter increased 4%. They've done OK, but thank God for tax cuts, because on a dividend standard, they've had 9% five-year growth, but the average for 10 years has been 1%.

He would not be a buyer. The company has a fairly well-defined top, about $2 higher than what it is right now. Also doesn't have a lot of FMV potential. The stock has been struggling to get higher and it hasn't been dynamic. Thinks that when it hits technical resistance and FMV resistance at the same time, it's toast. If you own, you could hold it for another $1, but that would be it.

Has a lot of money parked offshore, which they can now repatriate and do M&A with. They need M&A because they have a lacklustre pipeline of drugs. The stock has been dead money for 5 years. Trading at 13.5X PE, and the market trades at about 19X PE Forward. Very cheap. They’re growing the dividend and are buying back stock. EPS should go up, because of stock buybacks. Thinks the stock will be going up 15% because of all the tailwinds. Dividend yield of 3.7%. (Analysts' price target is $39.)

Nothing outstanding is going to happen to the company. Their pipeline is encouraging them. Continue to collect your 3.5% dividend and watch for a catalyst.

With everybody aging, pharmaceuticals should be a place to be. However, they’re all struggling, coming up with new drugs, which are getting more and more expensive to do the R&D for. Cash flow is hurting all of them. They are facing a very tough regulatory environment. The only way this company has been able to grow is to make acquisitions. He struggles with the whole sector.

(A Top Pick Dec 28/16. Up 14%.) This has given him decent earnings along the way and they have raised the dividend along the way. A good company and a good story to keep. They are investigating whether they are going to split the company in 2.

One of the great American pharmaceutical stocks. A little cheaper than a lot of them. They don’t have a whole series of blockbusters hitting the lights out, but have a very diverse product line. They’ve made some acquisitions and will make more. Extremely well-managed. Believes it can drift towards the low $40. A good solid Buy and Hold. Dividend yield of 3.6%.

A Pharma US stock with dividends and growth. PFE-T is the one he would recommend. It is a very well run company with a steady dividend and a good pipeline of new drugs. It has pretty good shareholder friendly management that buy back stock and create value. It is his favourite way to participate in aging demographics.

In the 90s, drug companies traded at 30X earnings with 10% earnings growth. All the drug companies are suffering badly because they are not getting a good return on R&D. Every country is putting pressure on pharmaceutical prices. This is trading at 20X earnings and has lots of free cash flow, but the drug sector is simply a very difficult place to be.

Has owned this for a long time. Rates of return over the last 5 or 6 years have been mediocre. Trading at $36, and his model price is $45.72, a 27% upside. Pays a 3.56% dividend. They have been totally incompetent. If rates of return ever kept up with the rest of the drug space, he would buy it here and hold it, but it is a frustrating stock.

The trouble with these kind of drug companies is that they made lots of acquisitions, which is how they have grown. Many were considered growth companies because they came out with social drugs, and ended up with huge multiples. There are lots of good things in their pipeline, but there are not going to be these massive, massive blockbuster drugs they used to have.

(Market Call Minute.) This has run up a little bit lately. He likes to buy this at $31 and sell it at $38.

They have a ability to be a global commercialization machine. They have 125 drugs that generate in excess of $100 million in revenue. It is on the uptick after passing the patent cliff. It does have a whole lot of pipeline excitement over the next couple of quarters, but it has a 12.9 times forward earnings with a 3.9% dividend yield.

All the Pharma companies are in a really tough space. Every government globally is squeezing them on prices. They have less and less money to spend on R&D, which means they are having trouble coming up with new blockbuster drugs. The FDA and everyone else are pushing generics as fast as possible. These companies really haven’t had huge blockbusters. He is not a big fan in general of the Pharma sector.

(A Top Pick June 9/17. Up 4.29%.) Arguably your best pharmaceutical company in the world, with the largest research and development pipeline and the largest salesforce. It is not just domestically focused, but has tremendous operations overseas internationally, including emerging markets. Has a nice, juicy 4% dividend yield.