Before this month's choice, I had no pharmaceutical stocks as part of my holdings. This is because these companies' fortunes are largely tied to the "pipeline" of drugs slated to come to market in future years - an extra layer of speculation which, for the most part, I'd rather not deal with.
Biovail (BVF), however, buffers this uncertainty with my favorite (relative) comfort: a large dividend yield (14.0%). It also has outstanding margins, return on assets/equity, positive cash flows, and no debt, all at a low 8.8 forward P/E. Its market cap of $1.7B would easily be absorbed by a larger, cash-rich, pipeline-starved pharma company, should one become interested.
Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.
Terra Nitrogen (TNH) 14.03%
Southern Copper (PCU) 10.17%
Dominion Resources Black Warrior Trust (DOM) 10.05%
Google (GOOG) 9.52%
Apple (AAPL) 9.38%
Tesoro (TSO) 9.15%
Ace Limited (ACE) 6.94%
American Software 6.15%
Frontline (FRO) 4.87%
The Distressed (AIG, BX, C, F, FNM, GM, JSDA, MOT, WFC, YRCW) 4.68%
Tidewater (TDW) 4.19%
Biovail (BVF) 3.63%
Atlas Energy Resources (ATN) 3.15%
Apache (APA) 3.00%
