Pfizer

[Mermaidman]

Pfizer shares plummet today due to bad news regarding Celebrex. Wondering whether to buy the stock or not. It's currently less than $25! How bad can it be? Surely the stock will recover after the initial scare?

 

[Colt45]

I don't even know what celebrex is.

 

[dman]

I'll let you know in a few months.

 

[GT1999]

I'd probably say yes.

These scares are normally just that -- scares.

 

[GasX]

Originally posted by: Colt45
I don't even know what celebrex is.

It's an uber-anti-inflammatory.

It's used a lot in arthritis - hence the commercials with seniors doing karate and running around like lunatics....

This whole class of drugs has cardiac issues. The same thing happened with Mercks similar drug a few months ago.

The fact of the matter is, to actually experience the issues that are getting them in trouble, you have to be on the max dose for a year or so...

This screws the person with occasional knee pain that wants something to zap it...

 

[IHateMyJob2004]

While this isn't a good thing and will effect earnings big time (thus the price adjustment), the future pipeline is still very attractive and should easily support future growth. I already own PFE and will be sitting on the sidelines. Don't need any more.

Stay away from MRK though. They have no future pipeline.

 

[Colt45]

Originally posted by: Mwilding


It's an uber-anti-inflammatory.

[snip]

Ah, I see.

thanks.

 

[Mermaidman]

Originally posted by: Mwilding
. . . This screws the person with occasional knee pain that wants something to zap it...

True--My father was just complaining that Vioxx worked really well for him He thinks Celebrex is not as effective, but he may not have that choice soon if the drug is pulled.

 

[frankie38]

yes buy now. look at mrk stock. wnet down and now has recovered some off the lows.

 

[UTmtnbiker]

I'm considering buying also on today's news. Looking at Pfizers fundamentals, this is an incredible buy. Looking at their balance sheet, income statement, and cash flow, they all look good. They have a net working capital of something around $6 billion :Q Total assets is larger than total liabilities by something around $65 billion, and cash on had of $1.5 billion (all number for year eanding Dec 03). It looks like for 3 out of the last 4 quarters, they've been bleeding cash on the order of $90 mil to $550 mil but it looks like they turned it around in the last quarter and has positive cash flow of $1.2 billion which wiped out any negative cash flow they had for the first 3 quarters/

This company is very solvent RIGHT NOW. The only thing I didn't find (didn't really dig in too much) is how much Celebrex sales is of their total revenue. I can't imagine it being a significant portion of their sales but if it is, they could easily go back in to the negative for cash flow. Another negative is that their net income has been declining for the last 3 years, quite significantly I might add. This may be an indicator of slower sales. I don't know their drug line, but I believe both Viagra and Prozac are Pfizer products. It could be the slowing of these two cash cows.

All that being said, I'm in for a buy. The dividend yield alone makes it a very attractive buy for me, which at current prices is right around 3% and even if PFE takes a hit, it looks like they've been consistently paying a dividend for the last 3 years (and they've been consistently growing the dividend payout).