Pfizer Inc (PFE)

In drug stocks, downsides can be fairly severe, but in large integrated drug stocks like this, perhaps less so. This company always has a pipeline of drugs in the system. He doesn’t see a lot of downside from here, but given the industry it is in, a move of 15%-20% is not unusual. You have to have a high tolerance for volatility.

(Sell?) There is a lot of pressure on pharma right now as well as some of the biotech companies. He wouldn’t disagree to making this kind of a move.

Sell before election? All the health care names have been under the threat of Hillary getting in. PFE-N sold off some non-core assets. She has chosen JNJ-N.

He likes this stock. It is attractively valued and ranks reasonably well in its pipeline. It makes sense if you are going to own it in a broader portfolio, especially if you are looking for some income.

In the spring, this company was going to merge with Allergan (AGN-N) and do a tax inversion deal. The stock price had been pushed up on that. The US government collapsed the deal, so the stock pulled back. They used their cash to make 3 or 4 smaller acquisitions. They really don’t have a home run product that is coming out in the market. It has a nice dividend yield of around 3.6%. His target price is $44. The company is really well run and will make acquisitions, and just grind higher.

Another stock that has been recently pulling back, but a fabulous long term stock. It was moving higher when other stocks were not. A great long term holding (3 years plus).

There are concerns around the US election, and what that could mean for the drug pricing model. Pharmaceutical companies have had an ability to raise prices over the last few years. This stock made a high in July at about $37, and has now pulled back to $34. He likes this company as it has great dividend growth. 3.5% dividend yield. As we go through Oct/Nov, there is going to be clarity on the US election and what the implications are. Thinks the market is discounting some uncertainty at the moment.

(Market Call Minute) Suffering like all pharma companies.

(Market Call Minute.) A large cap Pharma that provides an attractive yield. There has been a lot of M&A activity in the sector and they have products in the pipeline.

(Market Call Minute.) One of the better growth stocks in health care. Right now there is a lot of risk in the health care sector going into the election, from both sides.

They’ve been restructuring their portfolio and selling off non-core, and trying to focus more on big segments of their business. If you want exposure to Pharma, this is fine. The worst is probably behind them.

CVS-N is just like Coke and Pepsi. They are half drug retail and half pharmacy benefit manager. It is hard to find areas in the sector that are less expensive. A MRK-N or PFE-N have done nothing for years. The whole industry has changed.

A super, high quality stock that people have owned for decades and decades. A constant dividend grower. Has always had a great pipeline of drugs. Doesn’t believe the entire drug industry is either a Long or a Short. Wait to see who is elected in the US, because that will have a very big impact on sentiment.

You are not paying a lot for the valuation on this, about 13X next year’s earnings. Has 3 business lines including innovative drugs, established pharmaceuticals and oncology and consumer. You could see a split of one of those businesses. Has a great dividend.

Likes healthcare in general. It has some of the highest growth rates and tends to be trading at lower valuations. This is one of those companies. Have had some very good acquisitions, and valuations are attractive. This would be a long-term, safe, more defensive, and in one of the best sectors. Good management. 3.5% dividend yield.