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I enjoyed Bill's column today and agree with the general sentiment. In fact, I myself advocated buying more Coca-Cola shares on this board some months ago. However, now that Schering Plough has fallen to 34, I feel it is a more compelling buy than Coke at 50.
In 1999, Coke's revenue increased 5%, gross margins fell, and net income decreased 9%, to $1.29 per share before special charges.
Schering Plough's revenue increased 14%, gross margins increased, and net income rose 20%, to $1.42 per share.
It seems to me that, with Schering Plough, you get similar current earnings and more growth going forward, for two thirds the price.
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I wholeheartedly agree with the purchase of SGP. I am pooling money now to build up my DRP.
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i agree. SGP is compelling at these prices.
there's always been a preference for quality over valuation using this strategy. there was a discussion about valuation vs. growth on the strategy board. a poll showed a split between the two. i've always favored both (when possible)- looking for a growing company whose valuations become temporarily attractive, as is now the case with SGP (and other drug stocks).
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jsahaj wrote in 5733:
i agree. SGP is compelling at these prices.
The big question I have with SGP is their product pipeline -- what's next after Claritin? Unfortunately, up to date information seems hard to find. If one goes to the page for the Schering-Plough Research Institute (http://www.sp-research.com/abcen.html), the link for the pipeline says "under construction." :<
Meanwhile, the wonderful LabPuppy site (http://www.labpuppy.com/pipeline.htm), an otherwise great page for researching drug companies, has only a link to the 1998 annual report section on the pipeline.
So, where does one find more current information?
--Anthony
(Go Lakers!)
