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

To: HiSpeed who wrote (6024)	10/14/1998 3:00:00 PM
From: Paul Shread	Read Replies (1) \| Respond to of 9523

Today's reaction has me baffled too. The market's action seems to be based at least partly on safety; cyclicals are getting hit. As far as PFE vs. MRK, I really only follow those two companies in this sector because of their name and dominance, but I look at it this way: the sector is trading at a PE of 40; PFE is trading at a PE of 48 or so, while MRK is trading at a PE of 32. If both of them have only 10-15% forward growth, which one will you do better in? PFE seems to have been priced for a higher growth rate than they're apparently going to deliver. MRK does have some troubles of its own, but they seem to me to be a more reliable bet at these levels, IMHO. Paul