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

To: Ally who wrote (2207)	5/7/1998 2:31:00 PM
From: Anthony Wong	Read Replies (2) \| Respond to of 9523

Denise and all, check out this Reuters story. Unbelievable!: FUND VIEW - Bonnel seeks growth stocks Reuters Story - May 07, 1998 13:04 By Mark Lewis NEW YORK, May 7 (Reuters) - As shares of EntreMed Inc. fell back this week from Monday's frenzied rally, fund manager Arthur Bonnel was happy to explain why the small biotech firm with the hot anti-cancer drugs was not among the drug companies in his growth-oriented portfolio. "They're not making money, so I didn't own any of that," Bonnel said in a Reuters interview. Bonnel, a momentum investor with a particular interest in pharmaceutical companies, said his Bonnel Growth Fund prefers bigger, already-profitable companies such as Warner-Lambert Co. and Pfizer Inc. . EntreMed more than quadrupled in value on Monday after a New York Times article praised the potential of the company's anti-cancer drugs. But on Wednesday it closed at 31-1/8, off 12 from Tuesday's close. Pfizer also traded lower, but Bonnel said he remained a buyer. From its current levels near $110 per share, he sees Pfizer trading close to $300 within the next 12 months. The big pharmaceutical companies invest heavily in research and development, with predictable payoffs for investors, Bonnel said. Pfizer's new Viagra impotence drug is only the most recent blockbuster product to emerge from the laboratory. "We're just on the cusp of major breakthroughs," he said. The industry "is going to be coming out with some tremendous drugs." He said technology companies also are poised to reap further benefits from their research and development investments, especially those involved in the digital flow of information. But here again, Bonnel prefers established, profitable companies like Cisco Systems Inc. to the more speculative, high-multiple Internet stocks attracting so much recent attention on Wall Street. As of the end of March, about 3 percent of the Bonnel fund's $110 million in assets under management were invested in Cisco. "They're slowing down a little bit but I don't think they're going to stop," he said of Cisco's momentum. "They are going to continue to be the industry leader." Cisco on Wednesday said it will work with U S West Communications Group and Dell Computer Corp. to introduce personal computers with high-speed digital modems that work over traditional copper telephone wires. Cisco on Wednesday closed up 2-3/8 at 76. Bonnel saw the stock approaching the $120 level within two years. The Bonnel Growth Fund was up 13.5 percent year-to-date compared with an S&P 500 up 15 percent. Bonnel's three-year average annual total return was 26 percent. But in the near term, Bonnel said he would not mind seeing a correction of five percent to 10 percent, to consolidate the recent advances. "I would like to see the market consolidate at these levels," he said. Asia's economic woes should continue to dampen U.S. companies' earnings during the second quarter, Bonnel said. But if inflation remains quiescent, next year will see a return to recent earnings-growth form. "Next year we're going to see some prodigious gains in earnings, and that's going to keep this market rolling," he said. biz.yahoo.com