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: E_K_S who wrote (48648)	7/9/2012 8:05:13 PM
From: Sergio H	Read Replies (2) \| Respond to of 78745

ABT is selling at a PE higher than its 5 yr avg. Using this metric, its fully valued. ABT's chart has a gap in March at about 56. The gap is within its present trend. MRK is selling below its avg. PE but has a pending court case involving VIOXX that is impossible to factor. I overlook this when I bought the stock. Looking at the chart, MRK has several gaps, with the most interesting one in Dec. 2011, just under 35. This gap is above the 200 day moving avg. so its within the present trend and fillable. Normally, I let stocks hitting new 52 week highs run. With MRK and ABT, for me it was time to sell today and book the profit. I think the pharmaceuticals are overheated technically and that abusive practices by the pharmaceuticals is just starting to hit the newstands. Why do you feel Pharmaceuticals will benefit from Obamacare? (I don't know if you factor in negative tangible book value when you calculate EKS $ or not, but ABT had a negative tangible book value). .