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Biotech / Medical : PFE (Pfizer) How high will it go? -- Ignore unavailable to you. Want to Upgrade?

To: Howard Bennett who wrote (390)	12/1/1997 2:43:00 PM
From: JHC44	Read Replies (1) \| Respond to of 9523

Hi Howard: Yes I agree the PE is very high & probably will come down at some point. I have been a holder of PFE since the 1970's & I am pretty sure it has never been this high. But, with the upgrade from Merrill Lynch today & the momentum in place it may still go up short term. Viagra is supposed to be a "killer" drug but if it even somewhat flops look out below. Jason

To: Howard Bennett who wrote (390)	12/1/1997 6:27:00 PM
From: John Wasikowski	Read Replies (2) \| Respond to of 9523

Howard, Right you are to be cautious of PFE's high P/E. However, no company has ever had the quality and quantity of PFE's pipeline in industry history. Also, if you look at the 1960s and early 70's, drug stocks had p/e's of 30-40 and some analysts like Smith Barney's (who are highly rated in the drug field) suggested at the beginning of 1997 that top-notch pharma companies will return to those p/e levels based on various industry fundamentals that have changed in the last couple of years. If you have access to Smith Barney pharma research, check it out for a full explanation. Also, remember PFE will trend with the general market, so if the market corrects big time, so will we. I think of this way: in five years I will look back and be very grateful that I invested in PFE in 1997. Hope that helps! John