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Was It A Good Call? NVO and Major Pharmeuticals

I published my very first Seeking Alpha article on January 9th, 2017.

I looked at 11 companies classified as Major Pharmaceuticals:

  • PFE
  • AZN
  • NVO
  • LLY
  • GSK
  • BMY
  • ABBV
  • SNY
  • NVS
  • MRK
  • JNJ
I concluded that NVO was the best choice as it was undervalued, had high quality earnings and five years of year over year growth in earnings.

How did that call do, roughly 3.5 years later?

We've added a new feature to INVRS called Performance Graphs.  Let's take a look:

The green bar shows the average return for the group, the purple annualizes it and the blue divides adjusts the return for risk by dividing it by its standard deviation.

Clicking into the "All Securities" at the bottom breaks the group into its parts.  NVO wasn't the best.  It was third from a return perspective and second from a risk adjusted perspective.  It was double the group average.

LLY and AZN, based on my method of analysis did not have anything to recommend them.  They weren't in the running.

I'm pleased with the result.  AZN would have been the best call, maybe of the three (it also has the best dividend yield), but NVO still did really well.

Just for fits and wiggles, here a graph of the S&P 500 plus a couple of S&P Health Care indices.

The S&P, over the save 3.5 year time period went up 34%.

What are your thoughts?


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