My single largest position is Pfizer (PFE).
Yeah, you read that right. Bigger than even Seabridge Gold.
I’ve been buying Pfizer for the last year, up and down, collecting that dividend, writing calls against it.
It’s cheap. And it’s in – by far – the most undervalued sector by almost every metric.
We’re talking companies with P/Es around 10 or 11, paying dividends of 3.5% to 7% that are secure.
It doesn’t get any better than this.
But while Pfizer’s been a gold mine for my portfolio… I’ve now got my eye on one of its competitors.
Pfizer just won the battle for Metsera – an obesity drug company that Novo Nordisk (NVO) wanted.
But Novo is the better play here. They may have missed out on Metsera, but they’ve got the second-best obesity drug on the market with Wegovy.
Pure Theatre
You likely heard about Trump announcing a deal to bring down the prices of obesity drugs. Dr. Oz said we’d lose 135 billion pounds next year – that’s 497 pounds per American.
Sounds scary for drug companies, right?
Wrong.
They’re lowering prices on the LOWEST doses.
If you’re really obese, you’re not taking the lowest doses. You’re still paying full freight. But here’s the beautiful part: as part of this “price reduction,” they expanded Medicare coverage for these drugs.
Translation: “Yeah, we’ll lower some prices, but we’ll make it up on volume.” They just expanded the market by millions of patients.
That’s why Novo Nordisk shares went UP on the “bad” news.
It’s all a charade.
These pharma companies already know their margins. They know what they can sell for. The pharmacy benefit managers get their cut, the pharmacies get theirs – but now Medicare patients can access these drugs.
The Setup for Next Week
I’ll probably be recommending a play in NVO to our paid subscribers next week.
This company went from $150 to $49. Another pharma giant – Eli Lilly (LLY) – went from $600 to $900-plus. Lilly’s probably going to break $1,000.
But Novo has the infrastructure, the manufacturing capacity, and now the expanded market access.
They’re positioned to capture massive market share in what’s becoming the biggest pharmaceutical opportunity of our lifetime.
Why I’m Betting Big on Healthcare
Look at what we’re dealing with – Merck, Amgen, and AbbVie all trading at P/Es of 10-11.
These companies have proven revenue streams, patent protection, and dividend coverage ratios that are bulletproof. Again, Pfizer’s paying me 5%-plus while I wait.
YOUR ACTION PLAN
If you want to position yourself ahead of this healthcare rotation, start building positions in quality names trading at deep discounts.
Companies like Pfizer, Merck, and Amgen are all sitting at levels where you can collect dividends while the market figures out what these companies are actually worth.
I’m betting my largest position on it.