Market Assessment- As of Saturday, November 6, 2021 at 5:25 p.m.
Last week the DOW again moved up, and closed strong on Friday, up 203.72 points to 36,327.95.
The Market is acting well and we expect it to continue upward again this week.
McDonalds (MCD) 254.71, Coca Cola (KO) 56.94, Disney (DIS) 175.63, and Amazon (AMZN) 3518.99 were strong performers, but Alibaba (BABA) 158.73, Baidu (BIDU) 158.23 and Netflix (NFLX) 645.72 sold off.
Joe Cotton
Our “Stock of The Week” is Pfizer, Inc (PFE) 48.61. Pfizer is a large drug company that discovers, develops, manufactures, distributes and sells Biopharmaceutical products worldwide. The PE Ratio is relatively low- 13.88, with earnings of $3.50/Share and a dividend of $1.56, for a dividend yield of 3.2%.
On August 23, 2021, Pfizer’s COVID-19 drug, Pfizer-BioNTech COVID-19 Vaccine was the first COVID-19 drug approved in the U.S. Prior to that approval, the stock started moving up in mid-July from about $40 per share to $51/share on August 23, 2021 when the approval was announced….see chart attached.
On Friday, November 5, 2021, the company announced that it had developed an oral vaccine and that the data from the recent trial was so significant, that the enrollment for the study was discontinued. Its oral vaccine candidate, PAXLOVID was found to reduce the risk of hospitalization and death by 89% compared to placebo in non-hospitalized high risk adults with COVID-19. In the overall study population thru day 28, no deaths were reported for patients who received PAXLOVID as compared to 10 deaths in patients who received placebo.
The company plans to submit the data to the FDA for Emergency Use Authorization (EUA) as soon as possible.
This a VERY BIG DEAL…and we expect the stock to move quickly upward to a much higher price. We don’t own any of the stock now, but plan to buy some in the very near future. The results for Pfizer’s drug candidate showed significantly more efficacy than Merck’s recently announced oral drug candidate, and Merck’s stock was down 10% in the last two days.
Joe Cotton has won 3 National Stock Picking Contests with yearly percentage gains in excess of 96%. His 2020 Wall Street’s Best stock contest winner was Inovio Pharmaceuticals (Symbol INO) with a 742% 1-Year return.
This article is not investment advice, nor is it in any way to be construed as investment advice. For Investment Advice consult a Registered Investment Advisor or a Certified Financial Planner. Joe Cotton’s website is www.cottonstocks.net. NKY’s Joseph W Cotton is publisher of the market newsletter, Cotton’s Technically Speaking. He is a graduate of Xavier University, a former bank manager and credit analyst, and a former Fidelity Investments registered investment representative. Contact him at cottonstocks@hotmail.com
