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B4 The Bell Thursday September 30


Hiding Bear

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Uncle Buck Has Nervous Breakdown

 

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rog read my mind. but nwd, I shoulda thought of that too.

 

Dow was down only because of MRK.

 

When was the last time the Dow was weaker than the broad market, I wonder. This has been going on for a couple of weeks.

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What a freak show.

 

I wonder why long-term investors like mutuial frauds feel the need to adjust their portfolios so much in the last three days of the month?

the statements are being sent out to the sheeple

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Merck

With the withdrawal alone, the company's earnings will suffer severely. Merck said its 2004 per-share earnings estimate of $3.11 to $3.17 would be reduced by 50 cents to 60 cents a share as a result of the Vioxx withdrawal.

 

  Wall Street is waiting to see exactly what cost cuts Merck puts in place. At the press conference, Gilmartin said the company wouldn't be hiring new sales staff to push potential products, but rather will move around the ones it has. But he did speculate that there will be people leaving the company.

 

  Merck also said it will maintain its dividend.

 

  Goldman Sachs anal cyst James Kelly thinks the dividend is safe, but that the payout ratio could spike to 70% by 2007.

 

  Many also expect the company to take a large reserve to protect itself from litigation stemming from the withdrawal.

 

  Because the side-effect issue has been known for years, there are already hundreds of people suing Merck for damages. Merck had played down the cardiac risks of the drug, but now that it has been withdrawn and a major, respected study showed a risk, the litigation floodgates are expected to open.

 

  The company and anal cysts have yet to estimate the possible damages.

Dow Jones Newswires

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