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Dathan Pyle
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At FDR Investment Group, Dathan and his partners have developed an investment strategy that blends fundamental research with a unique technical trade execution plan. This blended approach allows the ability to invest in strong companies at precise moments to achieve the maximum amount of profit... More
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  • Pfizer Looks Oversold... We're Buying 0 comments
    Aug 3, 2014 8:47 AM | about stocks: PFE

    Pfizer gained momentum earlier in the year as acquisition talks began to heat up with AstraZeneca. Their momentum quickly turned sour when it was announced that the two can not seem to come to an agreement and were entering a "Cooling Off" period. Pfizer took another hit as investors began to express concerns of weak guidance for the remainder of 2014.

    As of Friday morning, shares of Pfizer were trading less than a dollar off of their 52 week low of $27.76. Our research indicates that Pfizer holds a real value of $28.86 which suggests that they are slightly undervalued here.

    Looking forward, although talks have "Cooled Off" with AstraZeneca I believe that it is possible that they will resume talks later this year. It may also be worth considering that other acquisitions may take place. According to analysts at Berenberg Bank it is possible that Pfizer is looking to acquire GlaxoSmithKline. This would significantly increase Pfizer's vaccine business and give them a leading position in respiratory medicine.

    In my opinion the reward greatly outweighs the risk and this sell off may have created a great buying opportunity. Analyst consensus is $33.74 suggesting a 17% upside. There have also been a significant amount of insider buying in the past month.

    Disclosure: The author is long PFE.

    Stocks: PFE
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