The Secret of Money-Doublers They Don’t Want You to Know
#2 Pfizer (PFE) Calls
By Nick Atkeson and Andrew Houghton
As a result of the weaker U.S. dollar, goods manufactured in the United States are less expensive abroad. We combed through the U.S. Census
Bureau’s list of U.S. exports by type and found the largest category of goods we export is pharmaceutical drugs. It is also about the only category
of export that is showing growth from 2008 to 2009 year-over-year. In fact, year-to-date through August, U.S. drug exports were up 17.89%.
Pfizer (PFE) manufactures and exports a lot of drugs. The stock has been out-of-favor for
most of the decade, and even though it has appreciated 60% off its lows this year, it is still up only about 6% year-to-date. Analysts expect the
company to earn $1.97 this year and $2.20 in FY 2010. PFE has about $3 per share in net cash. If the stock were to trade at $20 next year, it would
be trading at a multiple of about nine times earnings and paying a dividend well north of 3%. We believe those metrics are too cheap and the stock
will be well above $20 sometime in 2010. So take a look at PFE call options.
Next: #3 Amazon.com (AMZN) Calls and SPDR S&P Retail (XRT) Puts
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