Dykstra: Have Faith in Pfizer

After another volatile day that ended with a late rally, it remains unclear which way the market will head. Many consistent readers will have noticed that I am very bullish on the health care sector and on pharmaceuticals in particular.

On the whole, health care expenditures nationwide continue to grow. Additionally, the cheap dollar makes American medical and pharmaceutical products cheaper, and thus more attractive, abroad.

While I like health care on the whole, I focus on the big pharmaceuticals, because these companies make for strong value plays, and the associated deep in-the-money calls trade at low premiums. Today I will take a look at Pfizer(PFE Quote), which I last wrote about in June.

The company continues to be bogged down by concern over its pipeline. One thing investors need to keep in mind is that a company of Pfizer's size in the pharmaceutical field possesses the resources to not only research and develop its own pipeline but also to buy a pipeline via a merger or acquisition. Pfizer recently unveiled a biotherapeutics center in the San Francisco Bay area. ...