Pfizer & Raytheon

[Zeno]

Drugs and War?

I mentioned to a friend that I was interesting in investing in a drug company and he recommended Pfizer. Looked at the financials, just released, and like what I see. They make about everything drug related and do research and development. A real monster of a company that is selling at a resonable price ~$30 share. Making money and projections seem reasonable, about 12% growth. Have been growning while stock is falling. Think this is a solid 3-5 year investment. Any Comments?

Only briefly looked at Raytheon - another monster company that makes some very interesting weapons of destruction. And a lot else. A negative is that they have a large dept load ~9 billion. They are just mucking along. So I am very ambivalent about this company. Any comments?

-Zeno

[Ray Zee]

the big drug companies are trading in the high teens in multiples. not bad from recent historical perspective but maybe still high. but with the world getting older they should be good long term holdings. remember as companies get real big it gets very hard for them to maintain their high growth rates. usually they slow way down.
pfizer and merck would be two of my picks. as drug companies value are determined by what they comeout of the pipeline with