A Contrary Play on Pfizer
12/31/2004 12:00 am EST
Ken Kam, manager of the Marketocracy Masters 100 Fund bases his recommendations on the activity of the m100, who represent the best investors from 60,000 monitored portfolios. As a result, this single Top Pick comes indirectly, from the cumulative skills of 100 top stockpickers.
"The key to outperforming the market over the long-term is the ability to adapt as sectors and styles come in and out of favor. The m100 are the most skilled stockpickers we can find for the areas of the market that are performing well. By reevaluating the m100 each month, the group constantly adapts to take advantage of the best opportunities to outperform the market. As such, my top pick for 2005 is also a stock that is currently favored by the m100.
"My pick is Pfizer (PFE NYSE), despite recent negative news regarding its drug, Celebrex. First, t he clinical trial that was halted involved using much higher doses over a much longer time than is currently recommended. I think the data tells us that it is not safe to use Celebrex at much higher does over a long time, but so far, it does not suggest that the current recommended dosage and usage pattern is unsafe. Second, I'd note that Celebrex is still a valuable drug for patients who have arthritic pain and a history of stomach problems. Third, with Vioxx off the market, there is less competition for Celebrex and Bextra (also made by Pfizer). And fourth, as noted, the m100 recently increased their position in PFE by 62%."
The key risk-on and off drivers today are the same – U.S. politics, global growth, other centr...