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-   -   Finally...Pharma! (http://www.early-retirement.org/forums/f27/finally-pharma-26945.html)

Donzo 04-13-2007 06:41 PM

Pharma stocks are finally popping! I have been pushing money into several co. that I thought had solid management and pipeline for over 15 years. Biggest holdings are Merck (most bought after Viox), Schering, Wyeth and Pfizer. I am seriously considering "culling" some of the gains next week. They are reporting performance next week...and it is looking good. I am considering pulling out 25 - 35% of total holdings and placing into global balenced funds to become more diversified. These holdings represent approx. 16% of my stock portfolio....and growing(over 3%..today). I have been biting my nails concerning these stocks w/ all the recalls/litigation/generics/pipeline possibility vs. deadends. But, I see them being successful in the future w/ potential slumps, thus my leaving the majority invested.

I have been waiting till they started popping......of course my concern is to not pull gains to early during a sector surge...but then again....not be greedy and hold to long. In this environment, pharma stocks are always one reaction/symptom/recall away from a freefall. But then again this sector is for the most part "underpriced".
There will be little tax hit as most are held tax sheltered
I love having this group to bounce off!

What are your thoughs? Hold em or semi fold em?
Thanks in advance.

crazy connie 04-13-2007 07:52 PM

Re: Finally...Pharma!
My though is the Boomers are gonna pop a lotta pills. I need to get into a sector MF for Pharma and Healthcare and ride it for the next 10 or 20 years!

brewer12345 04-13-2007 07:57 PM

Re: Finally...Pharma!
I have lost a lot more money taking profits too early than by hanging onto something that went down and stayed down. If the underlying business has improved enough that the stocks are still cheap even after the run-up, then I would probably hold. But come up with a target price at which you would start letting some go. When it gets there, look at the underlying business again, but unless things have dramatically improved, take some money off the table.

Mwsinron 04-13-2007 09:33 PM

Re: Finally...Pharma!
Do it before the cpi comes out tues ;D

SteveR 04-14-2007 12:06 AM

Re: Finally...Pharma!
Pharma is up but keep in mind Mega-Pharma (Pfizer etc.) will be losing some major branded drugs over the next few years as the patents expire and the Generics take them over. Also, most pharma companies are now sourcing raw materials and even some finished products from China and India. Costs are a major problem with US and EU manufacturing so many companies are headed to the Far East for high tech. and cheap labor. Follow the money.

newguy88 04-14-2007 09:59 AM

Re: Finally...Pharma!

Originally Posted by crazy connie
My though is the Boomers are gonna pop a lotta pills. I need to get into a sector MF for Pharma and Healthcare and ride it for the next 10 or 20 years!

That is what is troubling!! Exercise eat right enjoy life retire early. WHO NEEDS EFIN PILLS!!!

Moemg 04-14-2007 12:18 PM

Re: Finally...Pharma!
Vanguard health care has averaged 19% since 1984.Why would you ever sell ???

Donzo 04-15-2007 03:53 PM

Re: Finally...Pharma!
Thanks for the feedback!
I have been doing some more research and thinkin'. I have decided to stay fully invested in these companies for now as I feel....pretty good concerning their performance vs the general market at least through 07.

Now...if I see a dip in the market while this sector is up I may reconsider....holy cr*p -I got the hormones! ;D

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