Monday, December 04, 2006

Oh... you mean that drug. (Investing)

So how is that one drug? Which one? The new cholesterol one in clinicals. Which? The one you guys have pumped $800 Million into. What one? The one replacing Lipitor as it gets closer to patent expiration. Oh… that drug. We had to pull it today. It was… killing too many people.

With the report of Pfizer (PFE) pulling Torcetrapib shares fell off the table just as soon as trading started today. Here’s one for the WOW category; 3 month average shares traded is a shade over 32 million. Shares traded today… just shy of 290 million… WOW!!

Pfizer’s troubles are out there for you to find during your DD. The big ones are patent expirations the next few years (going to hurt a lot.) And the pipeline seems to be a little thin in the blockbuster category. But still I wonder? Could the new few weeks be a great time in history to try and catch this falling knife? The company is slashing people and expenses as I type. The dividend stands around 3.5% with today’s closing price. Pfizer also has a good dividend reinvestment program. If I was sitting on a stack of dimes I didn’t know what to do with and plenty of time. I would have to think about it. It would have to be strictly long term time horizon and making use of the dividend reinvestment program. Makes one at least pause and think. And thinking if never a bad thing.

What do you think?

More later.

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