Mad Money Machine

by Paul Douglas Boyer

PFE vs. PPH

On Tuesday’s Mad Money, Jim Cramer said to buy PFE not PPH. PFE is Pfizer and PPH is the Pharmaceutical HOLDRs (an ETF). He said opportunity is knocking because of the big spike in prescription drugs. Since PPH is a drug index, you could buy that but you would get both the best and the worst of the drug stocks, according to Jim.

Instead, he recommended buying Pfizer saying that it has a good risk/reward possibility with 2 down and 10 up.

Naturally for you the reader/listener I have taken up the challenge and will report the results to you in the Portfolio Smackdown, near the bottom of the table. Seems like PFE might swing both higher and lower (greater volatility), but in the end PPH could do just as well in the long term with less risk.

PPH is composed 21% of Pfizer by the way.

Oh, and don’t forget to click on the video link on the Portfolios page while you are there.

Thu, August 3 2006 » Blog

2 Responses

  1. Viking133 August 4 2006 @ 2:29 am

    Paul,

    Could you make it so that after submitting a comment to this website, you can edit it after it is posted?

  2. Paul Douglas Boyer August 6 2006 @ 3:44 pm

    I don’t know how to do it the right way in WordPress, sorry. Giving edit privilege also gives out lots of other privileges that shouldn’t be given out it appears. Right now, everyone has level 1. Any WordPress experts watching?

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