Tomahawk, WI 7/31/2013 (Basicsmedia) – A good investment vehicle or option is one which guarantees returns both in the short and long term for the investor. Pfizer Inc. (NYSE:PFE) is on the verge of restructuring and there is concern as to whether this whole process will lead to the creation of an entire new way of doing things thus giving birth to a company which investors have no information on or not. This process is set to start being implemented as from January 2014. The question is; how will this process affect, whether negatively or positively, the financial performance and returns of PFE as a company? This article will offer the possibilities.

Remember that PFE, Pfizer Inc, has always merged with or acquired companies since 2000. It has also sold some of its subsidiaries within the same period. These acts have always been necessitated by PFE’s desire to be a dominant force in the industry, and it has achieved remarkable success in this. However, there is a real possibility that the impending restructuring will lead to the disappearance of certain brands, especially those which aren’t considered to be as viable compared with others. Moreover, the process could also lead to unemployment when certain personnel are considered to be surplus to requirement.

How Has This Affected PFE Stock?

This news appears not to have affected or harmed PFE stock in any way. However, it could possibly lead to a few scenarios brought about by uncertainty in the coming months leading up to January 2014, when the restructuring process is expected to start being implemented. There is a very close resemblance or similarity between the financial results for the Q2 as reported by PFE compared with what industry experts had been expecting. Revenue was $12.97b compared to $13.01b by analysts. A year earlier, the earnings per share was 59 cents, and this has fallen to 56 cents.

Compared to last year, the financial results declared by PFE have performed marginally poorly. The company’s generics business appears not to have brought the expected profits, since it only accounts for 17% of the overall amount. In the past, analysts have always advised or recommended that PFE should spin off its generics division and put more focus and emphasis on its core business of producing and selling pharmaceuticals, which is more profitable. It appears that this is what the whole restructuring process is designed to address.

How Much Can We Learn from PFE Stock?

Before anyone makes a decision on whether to pull out of PFE stock, or to make this kind of investment, it is prudent to take a look at the company’s past history in terms of stock price. PFE is the largest drug making company in the U.S, and it has always been like this since its founding in 1849. PFE is a discoverer, developer, marketer, and seller of drugs both to animals and humans. It is a major drugs manufacturer enjoying demand for its products all over the world, and has an employment base of around 89,400 personnel. The stock price in the last one year, offers an interesting view as shown below:

I would recommend investment in PFE stock to investors willing to wait for much longer in order to start enjoying their returns. The latest financial results indicate a decline in terms of performance and returns compared to last year. The restructuring would probably lead to a period of uncertainty because of the new changes, therefore, probably leading to further loss. Unless you are willing to wait after making your investment, I would urge you to be cautious in your approach. However, as a company, let me say that PFE is quite stable thus being good investment for long term investor.

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