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

To: ratan lal who wrote (2490)	5/15/1998 12:45:00 PM
From: Anthony Wong	Read Replies (1) \| Respond to of 9523

Britain's BTP Climbs on Optimism Over Pfizer's Viagra Bloomberg News May 15, 1998, 8:55 a.m. PT Britain's BTP Climbs on Optimism Over Pfizer's Viagra London, May 15 (Bloomberg) -- BTP Plc shares rose 7 percent on optimism over New York-based Pfizer Inc.'s Viagra impotence pill, for which the British chemical company makes an ingredient. BTP, which produces a range of specialty chemicals, including disinfectants, agrochemicals and brewing agents, jumped 34 pence to 523.5. It's risen 24 percent during the past 10 trading days. Sales of Viagra, which was introduced a month ago, are likely to top $1 billion in the first 12 months, and may reach as much as $2 billion in 1999, analysts have estimated. ''It's such a powerful story in terms of sentiment. You're going to get a lot of publicity for Viagra,'' said Jeremy Chantry, an analyst at Credit Lyonnais Securities. Chantry had a ''buy'' stance on the company even before news of Viagra's potential was released. Chantry said sales related to the pill could account for about 3 percent of BTP's profit in a couple of years. Traders and investors said Credit Suisse First Boston analysts repeated their ''buy'' stance on the stock and set a price target of 615p. No one at Credit Suisse was available to comment.

To: ratan lal who wrote (2490)	5/15/1998 2:04:00 PM
From: Yaacov	Read Replies (1) \| Respond to of 9523

Buy PFE at 110 (now at 107 1/4) Sell CC at 14 Sell Put at 12 Total return 26000 on a 1000 shares (invest 55000 on margin) in 7 months if PFE >=110. Thats a 47% return in 7 months lal, pls.explain to me what is CC at 14?? What do you mean Put at 12? Lets say I own 1000 shares. Pls. given me examples in layman language!+ Thanks!

To: ratan lal who wrote (2490)	5/15/1998 11:40:00 PM
From: Lazlo Pierce	Respond to of 9523

Rattan<<The thinking behind the trade was quite simple. Buy PFE at 110 (now at 107 1/4) Sell CC at 14 Sell Put at 12 Total return 26000 on a 1000 shares (invest 55000 on margin) in 7 months if PFE >=110. Thats a 47% return in 7 months Only danger - PFE goes below 96. You end up with 2000 shares at 110. ratan>> ************************* In that scenario, your cost basis would be 97. 1000 @ 110, and the other 1000 would cost 84 (110 (strike price)-14 (call prem)-12(put prem). So total 2000 @ 97. Dave