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

To: BigKNY3 who wrote (3698)	6/24/1998 3:03:00 AM
From: Zebra 365	Respond to of 9523

Lets do a little simple math on Viagra sales and PFE per share revenues and earnings. PFE has 1.3 Billion shares outstanding. If PFE sells $1.3 billion dollars worth of Viagra in 1998 that will increase per share revenue by $1 per share. If net margin on that $1 is 40%, then EPS will increase by $0.40 per share for 1998. And few analysts are predicting that much in Viagra sales for 1998. PFE has run from $65 a share to yesterday's $110 per share since October 1997. I would hope the company is not being judged on Viagra alone, or it has increased it's market cap by 71 billion dollars for less than 1.3 billion in added sales. But there was a jump from $86 to the present or $25 per share (about $32 billion market cap) on the approval and rollout of Viagra. While I realize that the market prices are forward looking, I think that those who have not looked at the above numbers will be disappointed to see how little Viagra adds to 2nd quarter earnings, not because Viagra is not hugely sucessful (which it is) but because PFE is such a huge company in number of shares, market cap and other sales. I'm not short PFE the company, but I happen to think that PFE the stock is ahead of itself, and with the loss of Zeldox (for now) I don't see where any positive surprises could come from to sustain the current stock price. Zebra