Enterprising Investor Forum

Most people are staying away from pharmaceuticals and indeed, the stocks are not benefiting as much as more volatile sectors in these sudden bull rallies but we are looking for long term value and margin of safety.

Ok granted, it may be a while until Pfizer (PFE) comes out with the next ’super drug’ but in the meantime, trading at late 2005 levels, around 18 times earnings and with a 6% dividend yield: there is little not to like about the shares. They continue to have a strong cash position, consistently generated returns on capital well in excess of its cost of capital and are a solid divided stock.

Most analysts are just saying hold but this could be a very good time to snap-up some shares!

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