To: BigKNY3 who wrote (3099 ) 6/1/1998 2:17:00 AM From: BigKNY3 Respond to of 9523
The Peabody Report is intended to foster conversation on the PFEr Board. Invest only after conducting your own research. BigKNY3 ______________________________________________ The Peabody Report: 5/31/98 Peabody Model Trend Prediction Based on historical PFE patterns, the Peabody Model predicts the following trend direction: PFE reached a Peabody Valley of 101 3/8 last Wednesday (5/27/98) and has reversed and headed to a new Peabody Peak of 120.75 by June 20, 1998. Commentary If the Valley of 101 3/8 holds, Mr. P came within 1/8 of pforecasting the exact Valley. Sorry, no one is that good or lucky...Let's see what this week brings. Since it is based primarily on historical trends and Mr. Peabody "gut feels", the Peabody Model should always be placed in context of the market environments and anticipated news. As evidenced by the mythical Peabody Portfolio (see section below), the Peabody Model works particularly well for PFE investors with a "buy, hold, and buy more at the Valley" investing strategy. New or pfuture PFErs could consider investing 50% immediately and investing the remainder at near Peabody Valleys. ______________________________________________ Peabody Short-term PForecasts Peabody Short-Term PForecast (5/24/98): PFE: 105.44; DJ: 9,114: A very important and volatile week for PFE. Expect large price swings. PFE may reach the targeted Peabody Valley on Tuesday morning followed by a strong swing upwards reflecting the release of the 5/9/98 Viagra Rxs.(Expect 325M+). Additional Viagra information may also be released by PFE during the week. Gut-feel: Based on the information known today, last week's Viagra news could encourage future proper prescribing, less potential for abuse, reduce unwanted humor, and ,most importantly, reinforce the contraindication of mixing the big V with nitrates. The keepers of the Peabody Portfolio are watching and waiting for an opportunity near 100 to 102 ...followed by a quick move to a Peak. Evaluation of Peabody PForecast: One of Mr. P's best calls ever....Big Thumbs Up! Peabody PForecast Record (63 weeks): 39-23 (63%) __________________________________________ Peabody Short-Term PForecast (5/31/98): PFE: 104.81; DJ: 8,900:PFE will benefit from good news from the AUA meeting. Watch for a shaky market to effect all stocks. Gut feel: Expect some profit-taking to 102 and then a strong move pass 108+. ___________________________________________ Peabody Portfolio (+82.5%) PFE @ 104.81 In the last four weeks, the Peabody Portfolio has added 800 PFE shares to the Portfolio including a purchase of 100 shares last Wednesday. The mythical Peabody Portfolio consists of Mr. Peabody's 17 aggressive PFE purchase recommendations listed on the PFEr Board since August 14, 1996 . To add flexibility to the Portfolio, blocks of 50-200 shares can be purchased at each recommendation. To date, the Portfolio has purchased 3,400 PFE shares at an average price of $59.98 (only 3.5% off the subsequent next PFE Valleys). ________________________________________ # PFE Shares Purchased: 3,400 Average Price of Purchases: $59.98 Total Costs: $195,238 Total Market Value: $356,354 Total Potential Profit: $161,117 Date............#..........Purchase Purchased...Shares...Price 8/14/96: 200 $36.38 10/25/96: 200 $40.44 12/4/96: 200 $41.69 12/12/96: 200 $40.50 12/16/96: 200 $40.44 12/31/96: 200 $41.50 1/2/97: 200 $40.94 1/28/97: 200 $42.38 2/28/97: 200 $45.69 3/24/97: 200 $44.88 3/27/97: 200 $42.81 3/31/97: 200 $42.56 8/8/97: 200 $55.13 4/16/98: 200 $97.00 4/27/98 : 200 $113.00 5/7/98: 200 $107.50 5/15/98 : 100 $105.00 5/27/98 100 $101.75 Total: 3,400 $59.98 ____________________________________________ Suggested PFE Buying Levels The following suggested PFE buying level is based on The Peabody Model. The aggressive buying price level is used in adding shares to The Peabody Portfolio. However, depending upon market conditions an immediate purchase could be made at any time: Aggressive PFE buying levels: $98 to $102 Conservative PFE buying levels: $94 to $99 ________________________________________ Future Actions That Will Effect PFE Viagra Rx and sales trends: Every Monday, throughout 1998 News of Viagra adverse reactions and drug interactions: Throughout 1998 AUA Meeting-presentation of Viagra data : May 30-June 4,1998 FDA review of Zeldox: June, 1998 2nd Qt PFE earnings: July 15, 1998 Launch of Zeldox: Summer, 1998 European approval of Viagra : September, 1998 ED news in the media : Throughout 1998 _______________________________________________ Peabody V-Files Analysts' estimates of Viagra 1998 sales average $576 million, a 51% increase over the original estimates made prior to approval. At the current specification rate, it is estimated that Viagra is selling at a rate of $80 million per month. Accordingly, a conservative 1998 Viagra sales forecast is $720 million. _________________________ PFE Splits PFE has split three times in the last ten years ( 2/91, 6/95, and 6/97). The Wayback Machine indicates that PFE has announced a 2-1 split if PFE trade above 80 for 90 consecutive days. In the January, 1998 survey of 22 PFErs, only 43% felt that PFE will split in 1998. At the Annual Meeting on April 23, 1998, PFE management stated they will consider requesting additional authorized shares from shareholders later this year. Bottom line, the next split will be 3-1 in the Fall, 1998 or March, 1999. ________________________________________________