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Should I buy or sell Pfizer stock?

Pfizer’s stock performance

Looking at the weekly chart for Pfizer’s stock (PFE) below you will notice that it’s been on a bullish uptrend.  The 50 day moving average (the line in blue) and 200 day moving average (the line in red) both support that thesis.  That is for good reason because they have multiple investigational drugs in development and a few are due for review this quarter.

pfizer stock chart

Healthcare Pharmceuticals

If you have ever used the tasty but limited edition cake batter flavored Chapstick, Advil pain medicine, Dimetapp or Robitussin for cold and cough, then you are a customer of Pfizer.  What do you think of their products?  Please let us know in the comments below.

In this final quarter of the year, they have 3 investigational phamaceutical drugs in the pipeline for review by the Food and Drug Administration (FDA).

Pfizer’s investigational drugs pipeline

November: ALK positive metastatic Non-Small Cell Lung Cancer (NSCLC)

December: Talazoparib for breast cancer and Glasdegib, a cancer inhibitor.

Their stock is ~$45 on 10/9/2018 has been trending up all year.

ScreenHunter 810   Biotech stocks are very risky and volatile and can drop to pennies with a failed trial announcement.  Having said that, a key positive clinical trial or FDA approval can ignite the stock to the heavens because they can then manufacture and bring the drug to market.  You may ask if this is a good time to enter and purchase Pfizer stock, don’t we need to evaluate what is the perfect entry and exit prices?  Execute them by entering or exiting at the right time down to the seconds?  Not at all, as you will see our SP2 strategy simplifies the entire process while limiting our risk exposure so you can enjoy time with your loved ones.

We are buying Pfizer stock

We have established a stock position in PFE because of the potential unlimited upside the investigational drug pipeline brings.  To address the potential downside risk in loss of capital, we are applying our SP2 strategy to lock in a max loss of $1.46 per share.  This will be the maximum amount loss if Pfizer drops to $0 a share.

MoneyFromCash.com SP2 strategy

Let’s compare our SP2 strategy with a stock only strategy, assuming both entries were acquired at $45 per share.

Stock only: 

Stock goes to $70 per share, profit = $25 per share

Stock drops to $1 per share, loss = $69 per share

Our SP2 strategy:

Stock goes to $70 per share, profit = $25 per share

Stock drops to $1 per share, loss = $1.46 per share!

How can our SP2 strategy protect against such a huge loss?  Why don’t all your trades have this type of risk reward profile?  To learn more, please contact us for our trade alert subscription or one on one coaching and put your lazy idle cash to make you money!

 

Disclaimer: We are not financial advisors and are not providing any financial advice.  Stock trading may incur huge losses.  All content presented are for entertainment purposes only.

 

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