Wednesday, June 30, 2010

"Go East, Yang Man. . ." -- The Street's Advice

I know -- it is, talking here -- but it is intriguing (despite being a Jim Cramer property):

. . . .China Sky is set to report earnings of $2.41 a share for 2010, according to consensus estimates of analysts polled by Bloomberg. In comparison, Pfizer and Merck are likely to report earnings of $1.56 a share and $2.38 a share, respectively, for 2010. . . .

TheStreet is making the case that China's pharma companies may be a more compelling value that either Pfizer or Merck. Just so you know.


Anonymous said...

China Sky One is worth about 200 million in market cap and MRK and PFE about 100 BILLION ea. Its like comparing a major US/EU pharma to a vitamin manufacture. It is like comparing a value stock to a growth stock, apples to oranges, chocolate vs white milk, etc.. Also, how do you trust chinese stocks to have reported all debt, funding, shares, bonds, etc.. I don't trust. Now can you make money, surely.

Condor said...

I agree -- I posted it for comedic effect. Actually, it was an excuse to make a oool lil' graphic(!).

More seriously, though -- my general rule is to do the opposite of whatever Cramer says on pharma, biotech or healthcare names.

He has no instinct, nor intuition -- about these matters -- and even less hard experience.

Thanks for the thoughts! Do stop back.