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    Analytical review of Pfizer Inc. shares on 15.03.2016

    Pfizer Inc., #PFE [NYSE]
    Public health, medicine production

    Financial performance:

    Index –DJIA, S&P 500;
    Beta – 0.90;
    Capitalization - 186.14 В
    Assets profitability - 5.70%;
    Revenue 6.95B;
    Average volume – 38.61 М;
    P/E - 27.12;
    ATR – 0.58.


    Analytical review:

    • The сompany has the 3d biggest capitalization in the public health sector among the issuers listed on the US stock market.
    • At the beginning of February, the company provided a report on the financial year 2015. According to the company's press release, its net profits dropped by 23.9% from 9.13 billion USD to 6.95 billion USD during the period under report. The EPS factor decreased by 21.8% from 1.42USD till 1.11USD.
    • At the press conference, the company's management announced that the revenue had dropped by 1.5% from 49.60 billion USD to 48.85 billion USD because of the strong dollar.
    • In November the company announced its plans to take over Botox producer Allergan Plc for 160 billion USD.
    • Yesterday, the company declared that the new cancer treatment medicine Xalkori had been approved by the FDA.
    • The majority of large investment funds and banks (Argus, Morgan Stanley, Barclays) forecast a share rate rise of up to 40 USD.

    Summary:

    • Despite the negative report on the financial year 2015, the company has a substantial growth potential. A successful merger with Allergan Plc would create the world's largest medicine producer. The company's new medicine developments have been approved by the FDA, which will influence investors' confidence.
    • Thus, we expect that the company's quotes will be rising in the nearest future.

    Trading tips for Pfizer Inc's CFDs

    Long-term trading: the issuer is currently trading at a powerful resistance level of 30.80 USD. Once this level is broken and tested, and relevant confirming signals appear (PriceAction patterns, for example), we recommend searching for market entry points to open long positions. Risk per trade: no more than 2% of equity. Stop order shall be placed a bit below the signal line. We recommend that prospective profits should be fixed partly at the levels of 31.80 USD, 33.40 USD, and 35.20 USD, with Trailing Stop applied.


    Short-term trading: the company's Indian subdivision announced on Monday that the Indian government had prohibited sales of the Corex medicine citing its risk for health. The issuer has just crossed a local support level of 30.25 USD and steadied below. If the supply zone of 30.25-30.50 USD stabilizes, we advise you to search for market entry points to open short positions. Risk per trade: no more than 3% of equity. Stop Order shall be placed a bit above the signal line. We recommend that prospective profits should be fixed partly at the levels of 29.85 USD, 29.60USD and 29.40 USD, with Trailing Stop applied.



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