Stock Pick Of The Week - Pfizer???

In this dismal economy, it would surprise few people if Pfizer (PFE) were to announce job cuts or scale back its sales forecasts. Even so, some pros believe it's a timely buy because of its long-depressed stock price and rich pipeline of new drugsplus or minus—plus an attractive dividend yield of 7.7%. Pfizer is banking on 25 new products in Phase 3 late-stage trials, notes Wendell Perkins, chief investment officer at Optique Capital Management, which owns shares. Meanwhile, Pfizer's Lyrica, a pain remedy already on the market, is being tested for conditions such as epilepsy and anxiety disorder.
Another boon: the strong cash position of Pfizer, which has $26 billion on the balance sheet. In 2008, the company is expected to generate cash flow of $18 billion, enough to make the yearly dividend payments, fund capital expenditures of $1.9 billion, and still have some left over to buy back shares or another drug company, says Perkins.
Although the patent expirations on Lipitor and Viagra in 2012 and 2013 will probably hurt earnings, analyst Steven Lichtman of Banc of America Securities (BAC) is "focused on Pfizer's solid balance sheet" and its ability to offset the patent problem through acquisitions. He rates Pfizer a buy, with a 12-month target of 20. The stock, down from 24 a year ago, is now at 16.57. It hit 50 back in 2000. Lichtman sees profits of $2.38 a share in 2008, $2.47 in 2009, and $2.59 in 2010.
Gene Marcial