Stocks That Almost Made the Cut: January 2006

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January 3, 2006 | S.T.A.M.T.C | | Author Asif

This month’s SINLetter was based on the “Dogs of the Dow theory” and my pick for the dog with the most potential was Pfizer (PFE). I strongly considered featuring the generic drug manufacturer Teva Pharmaceutical (TEVA) or the biotech Amgen (AMGN) as my second pick to balance the ying of Pfizer and create a ying-yang effect.

The $1.73 billion in long-term debt that Teva carries on its balance sheet combined with its 48% run-up in 2005, made me seriously reconsider Teva. I liked Amgen a lot but its 8.07 P/S seemed a little inflated and took it out of the running. I finally decided on Ford as it is another dog (not of the Dow), that seems well positioned for a rebound and also fit in well with the Dogs of the Dow theme of the January issue.

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