Big pharma looks like one of the cheaper sectors in the market. Today, I bought
60 shares of PFE (Pfizer) at 19.33
50 shares of MRK (Merck) at 38.61
65 shares of WYE (Wyeth) at 44.41
In my tiny, self-made pharma fund, I like WYE the most. MRK will issue a dividend soon, which is one reason I wanted to own it. I bought 100 shares of PFE before (at around 20.70) and am averaging down. It will probably take years for the pharmas to get out of the doldrums. In the meantime, I am sure it will be a bumpy ride. If a Democratic president is elected, chances are that any universal health care plan will squeeze big pharma. In addition, Congress may decide to cut consumer prescription costs by supporting generics and reducing patent rights. But with money market yields at around 2%, I could do worse than put my money in these dividend-generating stocks. I am not necessarily a long-term investor--once MRK pays its dividend, for example, I will look to get out.
Update on June 2, 2008: Bought 50 MRK @ 38.12 (have 100 shares total now)
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