If there is anyone still here, I should like to ask a question about Schering-Plough.
I just began managing my own portfolio this May, after having become convinced that I could not do a worse job than the investment advisor who had been managing it for me.
I dumped a bunch of non-performers from the portfolio, but kept a number of stocks I "approved" of (in valuation terms), as well as some that looked overvalued (in terms of PEG ratios & such-like) but that were performing very well anyway. (If it ain't broke, don't fix it.) Schering-Plough, Abbott Labs, and Merck all fit that last category: stocks that I wouldn't buy, according to my criteria, but that I wouldn't sell once I had them.
Now, does anyone have an explanation as to why Schering-Plough has been performing so much better than the other two?? In my portfolio, SGP has gone up by 83% so far this year, while Abbott has gone up only by 24.5%, and Merck (which took a bit of a spill lately) is up only by 22%. One is outperforming the indexes by miles; the other two are underperforming. Surely it isn't just SGP's higher profit margins & ROE? What about prospects, etc.? Any ideas? |
