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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Suma who wrote (22308)	10/20/2005 5:15:54 PM
From: E_K_S	Respond to of 78567

Hi Suma - I was a bit early on my buy for PFE. Bought early last month at $26. It was a large position for me as I doubled my original purchase from five years ago. PFE is now at a multi year low about at my original price which I paid five years ago. Like many of the drug companies their near term prospects for growth are quite limited. If you plan to hold for 3-5 years (or longer) they pay an excellent dividend and will have a growth kicker (double digit growth) in three or more years. The stock probably can be bought at these levels over the next 6-8 months but sooner or later, the big money will move it's way in as management provides more clairity on their future drug pipeline. I held my nose last week and bought a bit of MRK. I dumped my long term holding late last year at $30 (for a small loss). If MRK ever get's to $22 like PFE, I will double up my positions. Any good portfolio should have a basket of drug stocks and now is the time to rebalance your holdings. I probably will sell some of my oils and natural resource stocks (it's never bad to take a profit) and look at more drug stocks. Don't panic as you have plenty of time to average into your final position. I like Paul Senior's approach... a little nibble here and a little nibble there. Good luck. EKS