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PFE) is seeing hefty trading volume this morning after distributing shares of its animal health care spinoff
ZTS) to its own shareholder base. Pfizer offered investors the chance to swap 0.9898 shares of ZTS for each share of PFE tendered. Demand was high enough to oversubscribe the offer, sparking a trade of 401 million Zoetis shares in exchange for 405 million shares of Pfizer. That means that Zoetis is now fully divested from its former parent's balance sheet.
Despite the excitement in shares of ZTS, Pfizer is looking less attractive from a technical standpoint. The stock's uptrend broke back in late April, and PFE has been making lower highs ever since. Unless Pfizer can break above its nearest $29.50 resistance level (and end its downtrend), I'd suggest staying away from the long side of this pharma behemoth.