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Biotech / Medical : PFE (Pfizer) How high will it go? -- Ignore unavailable to you. Want to Upgrade?

To: P.M.Freedman who wrote (8269)	11/6/1999 3:11:00 AM
From: synchro	Read Replies (2) \| Respond to of 9523

Guys, the Pfizer price dip due to the hostile bid for Warner is a great opportunity to buy it at a cheaper price. You want to know why Pfizer is dropping? Because every hedge fund in the world is itching to play the risk arb game: buying Warner Lambert and shorting Pfizer-betting that Pfizer will ultimately prevail. That's why Pfizer is dipping. Pfizer is a great company because it is has an exceptional R&D team, competent management, AND an excellent marketing organization. Do not overlook the last point. To paraphrase Philip Fisher, you have to pay up for excellence. And when excellence gets cheaper due to artificial conditions, you know value is unmasking itself and just have to hold your nose and load up. As you long term investors, here's the game: If for some reason the deal does not go through, the arbs will have to unwind their Pfizer short positions and the stock price will go back up, a nice profit cushion while you wait for the current stretch of bad breaks on the pipeline front to blow over. If the deal goes thru, that will only strengthen Pfizer's position in the pharma world. Most importantly, Steere and Co. will still be in charge. That's a much better arrangement than merger of equals because guess what? cost-cutting and streamlining is a brutal, but necessary affair to squeeze the value out of this deal, and it ain't gonna happen in a merge of equal deal.