Health care has been one of the best performing sectors in the S&P 500 this year. Are these stocks good for what ails you?
If you just look at all the cash available in the health care space you’d be hard pressed to remember that the US is in a recession.
On Monday Johnson & Johnson announced plans to buy breast implant maker Mentor Corp for $1.07 billion. J&J's tender offer includes a 92 percent premium to Mentor's closing price on Friday.
And J&J isn’t the only drug maker raking in the dough. Pfizer , Wyeth, and others are sitting on mountains of money leaving some to speculate that they too, may be looking to make an acquisition.
Sitting on Piles of Cash
Pfizer: $26 Bln
Bristol Myers: $7.2 Bln
Merck: $5.7 Bln
Eli Lilly: $4.35 Bln
What’s the trade in the space?
I think the trade is Pfizer, says Pete Najarian.
I own the Pharmaceutical HOLDRs and the iShares NASDAQ Biotechnology Index , reveals Karen Finerman.
You might want to look at Celgene, adds Guy Adami
All these stocks have been death, bristles Jeff Macke. Avoid them. They’re a safety group that have left most investors dead on arrival.
More on Merck
Of all these names, on Thursday most eyes will be on Merck which is going to give financial guidance going forward, explains CNBC’s Mike Huckman. Considering Merck shares are down 55% the guidance could move the market.