Drug price uncertainty choppy waters for Merck & Co (MRK)
Merck & Co sell prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. It is a global company that trades at 15 times earnings and pays a 3% dividend yield.
I suspect it made it's way onto the "Dogs" list because of all the uncertainty surrounding Obamacare and Drug Pricing in the USA. The market hates uncertainty and punishes the price accordingly.
I added it to the "Dogs of the Dow" portfolio at just a smidge over $60. A company of its size should be well placed to navigate any choppy waters resulting from government action on Drug Pricing.
I could go into a lot more detail about the company - but the above is really the story as I see it.
Lets see if some of the "uncertainty" discount unwinds over the next 12 months.
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Potentially in a defensive sector if and when the Markets turn as well.
I agree.
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