Zoetis Inc (ZTS)

(Top Pick Oct 30/13, Up 34.92%) This is a spin off from Pfizer and focused on animals. Sales are growing at 3 times industry average because they dominate in market share. 1 of 3 FDA approved drugs are theirs. They are looking to increase their operating efficiencies.

Largest animal healthcare company globally. There are opportunities with their ability to increase their animal companion ability where there is an increasing amount of emerging markets moving to a higher standard of living and higher adoption of companion animals. 0.81% dividend is paltry, but over the course of time he believes this can grow substantially. This has to do with their ability to double their free cash flow of $500 million to over $1 billion inside of 3 years. His target is $37 for 12 months.

(Pfizer (PFE-N) offered to exchange shares for Zoetis (ZTS-N). What do you think? This is Pfizer’s animal nutrition business and they have been streamlining themselves and focusing on their core pharmaceuticals which is probably a positive for them. Doesn’t know too much about this company.