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Financial Research Report On Wyeth Thesis

Wyeth is expected to increase at higher rates due to its being taken over by Pfizer. 3. Stock Price Analysis

The Wyeth stock is being currently (September 16th, 2009) traded at $47.70, revealing a 0.23 (0.48%) decrease relative to the previous trading session, which closed at $47.93. The day's high value so far is of $47.94, with a low of $47.64. The highest value for the past twelve months is of $48.30, with the lowest of $28.06 (Wyeth Pharmaceuticals Company Website). Compared then to the evolution of the past year, it is obvious that the price of the Wyeth stock option increased. The highest price in its trading history was of $69.75 and it was achieved on the 12th of April 1999. The lowest price was registered on the 17th of October 1984 and it had a value of $5.86 (Deep Market, 2009).

The five-year evolution of the Wyeth stock price has been a fluctuating one, with the highest price being registered in 2007 and the lowest in 2008. This evolution is presented in the chart below:

Source: Forbes, 2009

In terms of the P&S index, the WYE stock is a stable investment. Overall then, based on the past and projected evolutions, as well as the merger with Pfizer, the advice would be to purchase the Wyeth stock; or hold it, if already existent in the investor's portfolio.

4. Foreign Operations

Within the United Kingdom, Wyeth operates through four locations, each of them being focused on a particular type of operations. Despite the differences they reveal, the commonality is that they all implement the views and business model of the U.S.-based parent company, alongside with sharing its mission and values. All four locations are situated in the southern part of the U.K. And are briefly described below:

Taplow -- the headquarters of Wyeth U.K.; operates in terms of prescription drugs, consumer products and SMA nutrition

Maidenhead -- Wyeth's headquarters for Europe, Middle East and Asia; deals generally with administrative operations

Havant -- logistics operations, mainly packing and distribution, conducted through the highest technological applications

Gosport -- handles research operations, alongside with development and analysis efforts (Wyeth Pharmaceuticals UK Website, 2009).

Wyeth U.K. serves a similarly diverse customer base as its parent company in the United States. In terms of financial results, the company does not publicize the differentiated revenues per international subsidy, only the overall results of the entire organization.

5. Global Analysis

Outside of the United States of America, Wyeth Pharmaceuticals operates in the following regions: the United...

The question that is being posed at this stage of the report is whether, in case of an economic meltdown within the United States, the international subsidiaries would be able to financially sustain the parent company. An accurate answer would be based on the analysis of the differentiated profitability ratios generated by each individual subsidiary and its percentage within the overall revenues. Yet, since such information is not available for the public, the answer will be based on the extrapolation of the theory of portfolio diversification, which states that a company should diversify its operations and locations in order to reduce risks. Based on the fact that Wyeth is present at a global level through high degrees of location diversification, the most probable answer is that its subsidiaries would be able to financially support the overall company in case of economic difficulties within the U.S. Considering however the lessons from current state of the economy, in which the economic crisis emerged from within the U.S. And soon expanded throughout the entire globe, it is possible that the international Wyeth subsidiaries encounter difficulties themselves, due to the globalized financial difficulties.

Sources used in this document:
References:

2009, Wyeth Pharmaceuticals, Inc., Hoovers, http://www.hoovers.com/wyeth-pharmaceuticals/--ID__104566 -- /free-co-factsheet.xhtml last accessed on September 16, 2009

2009, Wyeth, Reuters, http://www.reuters.com/finance/stocks/ratios?symbol=WYE.N last accessed on September 16, 2009

2009, Wyeth, Forbes, http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=WYE last accessed on September 16, 2009

2009, WYE, Deep Market, http://www.deepmarket.com/stock/wye last accessed on September 16, 2009
2009, Investopedia, http://www.investopedia.com last accessed on September 16, 2009
2009, Wyeth Pharmaceuticals Company Website, http://www.wyeth.com last accessed on September 16, 2009
2009, Wyeth Pharmaceuticals UK Website, http://www.wyeth.co.uk last accessed on September 16, 2009
Wyeth Pharmaceuticals 2007 Annual Review, Retrieved from http://phx.corporate-ir.net/phoenix.zhtml?c=78193&p=irol-reportsannual on September 16, 2009
Wyeth Pharmaceuticals 2008 Financial Report, Retrieved from http://phx.corporate-ir.net/phoenix.zhtml?c=78193&p=irol-reportsannual on September 16, 2009
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