I'm on the fence here. I hate this feeling. It's down about 12%, but I'd like to see it drop 20% to get a great entry point. That'd be near $22. Hmmm. This isn't a vioxx type situation. PFE had a failed drug trial. Granted, it was a potential blockbuster drug, but it's not like a Merck situation, where they face 12,000 separate lawsuits, and untold liability.
Patience, patience. Just wait until the selling halts.(higher demand slows or stops selling). that's where I come in.
Probably tank even more. An international equities dealer here in Melbourne has had this dog on its "buy" list for the past three years! Refuses to remove it.
Pfizer Failed: So What? Posted on Dec 5th, 2006 with stocks: PFE Paul Kedrosky submits: Many people are walking away with a wrong impression from Pfizer's (PFE) torcetrapib's clinical trial being canceled over the weekend. Drugs stocks are up because investors think they're all in play with Pfizer, facing patent expirations and an emptying product pipeline, now seemingly forced to do a major acquisition. But there is another side. The other side is that despite tocetrapib being crucial to Pfizer, despite it being touted by company execs two days before the trial was canceled, despite Pfizer running this trial with the best and the brightest, the trial failed. And it happens all the time. Because what people forget is that Phase III drug failures happen regularly, something like 42% of the time, according to a McKinsey study. Granted, most of the time it's about placebo problems -- a drug doesn't actually do anything -- but safety failures, like this one, are common too. So here's the thing: Drug development remains, as ever, a total crapshoot. Despite billions being spent on targets, platforms, and the like, and despite VCs' rediscovered semi-ardor for the sector, you can spend hundreds of millions of dollars on a compound, only to have scarcely better than a 50/50 shot at making it through a Phase III trials. Far from boosting other drug development companies, you might think the news would take down the whole sector. Drug development is, in a word, broken.
ByLoSellHi, ok, looks like it's almost time to buy. this will be a multiday holding(2 days to 3 weeks) not a daytrade. I'll post one day before I enter.
I won't be far behind, Vic. Great article here on PFE: http://healthcare.seekingalpha.com/article/21786 PFE has lowest P/E ratio, highest yield, and number one market share of any pharma.
I would say most people are right, if you look at Pfe, solid balance sheet, however a good play to invest a couple of thousand.