Enter Pfizer (NYSE:PFE), which he has ranked as "market perform": It currently has an 8% cash flow yield, but Krensavage told his sales force: "We continue to liken Pfizer to a convertible bond." Even if sales grow sluggish, which he believes is likely, it can continue to cut costs to generate enough free-cash flow to produce a healthy yield. He goes so far as to say he would reconsider his rating if the cash flow yield hits 10%.
Meanwhile, the sleeper in this whole Torcetrapib fiasco might be Abbott (NYSE:ABT), which is buying Kos Pharmaceuticals (KOSP). Kos makes Niaspan, a slow-release form of the vitiamin Niacin, which has long been used to raise good cholesterol.