Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Jurgis Bekepuris who wrote (26690)	4/27/2007 7:31:47 PM
From: E_K_S	Read Replies (1) \| Respond to of 78744

Hi Jurgis - I continue to hold my 2/3 position in BMY but am still disappointed in the progress management has made in the last 18 months. Perhaps they are slowly turning things around especially with their recent announcement with Pfizer. Bristol-Myers, Pfizer sign $1 bln blood-clot deal Thu Apr 26, 2007 2:06pm ET140 yahoo.reuters.com I am over weighted with shares of PFE with an average price around current levels. PFE pays a higher dividend at 4.5% than BMY which is now at 3.8%. PFE has a historically low PE of 10 as the market has discounted the price because of their limited drug pipe line looking forward. Every portfolio should have some exposure to the drug sector. I also own JNJ and have LLY on my watch list. Here is an interesting chart. I have plotted the five year performance of BMY vs the S&P (^GSPC), Drug Index (^RSX), and the Integrated Oil Index (^OIX). finance.yahoo.com^rxs;range=5y;compare=^gspc+^oix+bmy;indicator=volume;charttype=line;crosshair=on;logscale=on;source=undefined Even with the recent run higher, BMY has underperformed all indexes. The drug sector in general has underperformed the S&P and the big winner has been the Integrated Oils. Lucky for my portfolio, I am also over weighted with Integrated Oils which has helped me off set my non performing stocks. Maybe the drug sector will get hot again and these low PE's will revert to their historical mean PE somewhere in the low 30's. EKS