Some Fundamentals on the Drug Stocks

I don’t have the valuation model for LLY, but I thought that it might be interesting for you to see the value models for the other drug stocks I posted on earlier this week-end.  There could be various reasons that the drug stocks are acting a little better than some of the other stocks.  the health care debates have affected their overall performance, but valuation and dividend yield might be another factor  in their individual performance.  A look at the X dividend dates might also offer some insight as to price action.

Valuation models courtesy of  www.powerinvestor.com

The S&P 500 Index (SPX) 02-13-10

The SPX closed Friday at 1075.51 down on the day.  There is still upside pressure being applied to price, but price can’t seem to get a foothold to move higher.  It has gone through the entry price for the move up that has its first price objective at 1105.90.  Price found support at the first price objective for the move down at 1046.  The lower time frame charts have price objectives and targets in the 1085 area with the highest target at 1094.  All below the 1105 level.  All three time frames that I looked have upside pressure being applied to price so if you are short right here be careful.  It doesn’t seem that price wants to move much higher, but time and some announcement will tell.