Wednesday, November 14, 2007

Paperstand (PFE, WB)

Barron’s Online discusses Pfizer (PFE), saying that things can't get much worse for the stock. Blame falling revs, failed drugs and widespread doubts that it can replace drugs losing their patents. But with multiples hitting 10yr lows and US Big Pharma's highest dividend yield, 5.1%, investors have little to lose. In fact, the stock could return 30% or more in the next 2ys if mgmt can pull off the right acquisition to offset falling revs. "It's a value play for ppl who are willing to wait and get paid for it," says Gregory Greene, of Fox Asset Mgmt. "It will take time for them to show Wall St what they can do."

“Inside Scoop” ection reports that Wachovia’s (WB) lead independent director, Lanty Smith, spent $3.9m last week on Wachovia stock, the same day shares hit a more than 4yr low. Nonetheless, Ben Silverman, of, says Smith's purchase is an endorsement of Wachovia's long-term value by a 20yr director who has a strong handle on the financial-services sector. He also points to a smaller insider purchase by another director in early Nov as a positive sign for long-term investors.

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