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: Spekulatius who wrote (29598)	1/8/2008 11:39:56 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78464

Pharma's up strongly (so far) today, it seems to me. I'll follow you and sell some SNY now too. Also some ABT. CAH, I can't figure. It's a buy based on reversion-to-mean of historical p/e and psr. I just don't see why, given its usual historically mediocre roe, it's ever sold at such higher p/e's and psr's in the past. Also, it seems d/e is up too. If I recall right, positives for CAH are the key guy who started the company (Bob Walter) and that they are also in several aspects of health care, not just drug distribution. Drug distribution is where CAH is larger than ABC or MCK, but profits have been squeezed there over past few years, I believe. And there's apparently not that many new drugs forthcoming from pharma manufacturers. CAH might be a buy; I'll consider. Not the same opportunity now though as when price dropped sharply in '04 and you and I discussed it here. finance.yahoo.com