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

To: Paul Shread who wrote (5994)	10/14/1998 12:24:00 PM
From: mauser96	Read Replies (1) \| Respond to of 9523

Pfizer has sold for P/E of 37 and above in 1991,1993,1997,and 1998 according to S&P Stock Report. I don't know whether these were same year P/E or the one that really counts, forward P/E. Certainly it's not cheap at these prices, and I'm a buyer only on declines. Overall, I think biotechnology is where computers were 15 years ago, just beginning a phase of very rapid progress. The key is that while in the past most discoveries were made mostly by serendipity, now they are being made by understanding the biochemical processes. This revolution is the biological equivalent of quantum mechanics in physics. New products will arrive at a logarithmic rate, and one side effect of managed care has been the discovery that expensive drugs are a bargain if they keep patients out of the hospital. I would be surprised if we see pharmaceuticals at cheap P/E ratios any time soon. The market is willing to pay a premium for steady growth compared to erratic growth. Which one of the Pharms will be the most sucessful is a real crap shoot, so I invest by owning small holdings in several companies, opportunistically purchasing on dips. In any case I was completely surprised by today's price gain so it doesn't look like I'll get a chance at the low 80's soon. regards