Price The Market Part 39
Glen is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
It's time to price another 5 stocks today. Let's do this.
261. PerkinElmer, Inc. (NYSE: PKI) was called correctly by Jim Cramer a few months ago, bottoming at $17. Target: $20-$25. I think PerkinElmer looks fairly valued after the recent run but you never know, it could power higher. The P/E is around 11 at present, ignore the ttm if you're trying to calibrate. There was a big quarter. I'm expecting slow to moderate growth and that's about where PerkinElmer is priced. Nothing special to see here, moving along...
262. Pfizer (NYSE: PFE) is pushing new three-year highs. I'd say that it's trading at a reasonable valuation, which implies that analysts need to revisit their investment hypothesis and set higher price targets. In my opinion, it is their job to justify a price that is a little higher than the present price. It's sell-side at its best. Target: $20-$25. I think it's funny that Pfizer is now adding liquidity to the global capital markets since the banks in Europe are severly undercapitalized. Pfizer declined to discuss the details which makes me a bit uneasy... as they might be involving themselves in what amounts to an epic vendor financing ponzi scheme in Europe that in my opinion could go on indefinately. Let's face it, people hate accountability.
263. Perrigo (NASDAQ: PRGO) is sellable at present. There's been some big volume just shy of $100 and as a betting man, volume indicates in this case that people are becoming more willing to sell at higher prices. Imagine that. Target: $87-$99. Statistically, when stocks break through round numbers like $100, they tend to run past it in the short term as chasers run after them and I'd take this dynamic into consideration as I legged into a short position over $100 assuming I'd easily be able to cover sub-$100 in the next 6 months. The volatility increase in the last 1-2 years indicates that we are at if we are not close to approaching fair valuation.
264. Life Technologies (NASDAQ: LIFE) cut the "off a cliff" drop that happened last July-August in half a few days ago. It makes you ponder: "what happened?" Well, Life Technologies can sequence the entire genome in one day for $1000. That's not bad at all. This also cuts the equipment price by 1/3. Pfizer could use this type of information to make smarter perscriptions, which would help alleviate their patent cliff. As for me, would I be willing to pay $1000 to try and figure out what kinds of diseases I might be susceptible to and try to proactively prevent them? Sounds like a great investment to me. I'll be looking into this personally. The ROL (Return on Life) is too high to pass up. Target: $50-$55.
265. Eli Lilly (NYSE: LLY) just fell from the top of their fair valuation range. I am not a buyer here because the upside is extremely limited and the momentum is negative. Target: $35-$70. Eli Lilly is at about where I think it should be trading only if you completely ignore any impact from the potential future of their Alzheimer's drugs. If those fall through to the bottom line you'd regret not owning this one at present but I still think you'll catch a little more pullback. Wait for the perfect pitch, but make sure you swing when it comes.
That's all for now, send me your stocks to price at globalspeculation at gmail.com.
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