Archive for January 3, 2010

A pill for your investment woes

 Publication: Business Standard, New Delhii;   Date: Jan 3, 2010;   

During uncertain times investors flock to pharmaceutical stocks. Here’s how to evaluate them.

Pharmaceutical companies are seen as defensive stocks. During uncertain markets, there is a flight towards pharmaceutical stocks as they are considered more stable than other sectors. However, one needs to be careful in selecting which stocks to buy, even in a ‘safe’ sector.

The first thing that most investors look at is the price-to-earnings(P/E) ratio, to determine whether they should buy a stock.

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