Fortune 40 Best Stocks for Retirement: Part III

This is part 3 of the Fortune 40 Best Stocks to Retire on (Part 1, Part 2).

We previously looked at the first 20 companies that made up the list in Fortune’s 40 best stocks to retire on. Here we look at the next 10.

40 Best Stocks to Retire On: No.21-30.

1. Pfizer Inc (PFE)
2. Regal Beloit Corp (RBC)
3. UST (UST) - Being bought out.
4. VF Corp (VFC)
5. Adtran Inc (ADTN)
6. AVX Corp (AVX)
7. Fair Isaac Corp (FIC)
8. Global Industries (GLBL)
9. Grey Wolf (GW) - No longer trades
10. Penn Virginia Resource Partners (PVR)

As we get lower down the list, we now come upon companies that some may not have heard about before. Topping the Fortune best stocks list in this 3rd installment is Pfizer, a pharmaceutical company that has kept falling since 2000. Not to mention the well known fact that its patent for Lipitor, its bread and butter, will soon expire. Pfizer and its increased activity in acquiring companies has also increased debt. Cheap but not cheap enough to consider buying in my opinion.

Pfizer

As I mentioned above, PFE is likely to encounter short term problems with the loss of Lipitor and trying to merge Wyeth into its operatoins.

Some points regarding their numbers:

• cash cow
• past 3 years sales have been flat
• good margins but fluctuates due to industry
• rising debt to equity

Stock Price Estimates

• Stock price as of May 5: $14.95
• Discounted Cash Flow Fair Value: $26.71
• Graham Value: $28.40

UST

UST is being acquired for around the mid $69’s. It’s always fun to see what the buyout price is compared to the investment spreadsheet. It just indicates that I am not being over optimistic or pessimistic for companies as a going concern.

The First 30 Companies from Fortune’s List

Disclosure: No positions in any stocks mentioned at time of writing.

Comments

[captainccs:]

How is a company like Pfizer -- that just keeps falling -- good for retirement? It will die when you do and they can bury you with the dead shares, I suppose.

I bought PFE at $27.09 back in December 2004. I got tired of it dropping in price and sold it at $25.45 in June 2007. Now this DOG is at $15.21.

WOOF, WOOF, WOOF, stay away from this DOG -- specially with the left wing party in full control of America!

Disclosure, no position long or short in PFE

May 13 10:01 AM

[chrisyunger:]

Pfizer is good if your a value investor.

May 14 04:14 AM

[User 418705:]

this is too funny

May 22 10:10 PM

[JerryR:]

Just bought PVR. For the dividend player, I believe it is a long term winner.

Jul 08 03:48 AM