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

To: Paul Senior who wrote (23859)	5/1/2006 10:28:53 AM
From: Paul Senior	Read Replies (3) \| Respond to of 78732

All of LLY's financial numbers look to me worse now than they have been. At this time, it does not seem that LLY is a growth company in the sense that it may have been in earlier years. I presume its researchers continue researching, and that the articles I read are true that LLY has a decent drug pipeline and/or significant drugs that aren't facing immediate generic competition. A stock buyer now gets a relatively-high dividend and okay net profit margins for the stock price one pays for those margins. (For complex and difficult to understand companies like pharmaceuticals, my preference is to make use formulas or models, such as the relative dividend model once promulgated by fund manager and author, Tony Spare.) On the one hand, one can say the multi-year trend is down, with no sign of a turn around, therefore why buy? My opinion is that at some point LLY wil stabilize, and the stock for me is low enough now to be a value, so I will again begin accumulating.