Time to Buy Drug Stocks for Yield: ABT,BMY,NVS

http://thurmansbikeandsport.com/index.php?/342e2b90-123135098.html http://azteenmagazine.com/tag/everything-disc-for-leaders/ Contrarian Call -Look at the Drug Stocks

The healthcare sector has lagged the market in 2010 down about 1.34% compared to the S&P up about 9%. The large cap drug sector has done worse down 4.3%. Investors are drawn to more dynamic growth sectors in 2010: energy, industrials,materials and technology. The reasons for the poor stock performance of major drugs has been widely communicated: fewer new products driving biotech acquisitions, patent expiration of blockbusters, healthcare reform concerns and legal/regulatory issues. With the large cap pharmaceutical companies the sentiment has become bearish enough to start looking for new buys especially for investors looking for relative safety and yield. A call/write strategy can also reduce risk. Three good stocks to consider for now would be http://quantumbuild.net/kitchens/?COLLCC=3149307879 Abbott(ABT $47.47),Bristol Myers(BMY $25.82) and Novartis (NVS $54.73).

Company Ticker Price YTD MCAP PE Yield 2011 Est
2-Dec % Ret $B % % RevGr
Abbott ABT 47.5 -12.1 73 16 3.8 8.8
BristolMyers BMY 25.8 2.34 44 13 5.1 4.3
Glaxo SK GSK 38.9 -8 99 16 5.3 -0.9
JNJ JNJ 62.7 -2.7 172 13 3.5 3.5
Merck MRK 35.2 -3.72 108 13 4.4 -1.4
Novartis NVS 54.8 -3.75 125 13 3.1 12.6
Pfizer PFE 16.7 -8.1 134 22 4.4 -1.7
10 Yr Tsy 3%

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