Cheap...but deservedly so   As a result of Pfizer's stock swoon this year, it would make sense for some value investors to be nosing around. The company's price-to-earnings ratio is one of the lowest for the major drug companies. But while Pfizer may seem cheap, there's a good reason. It's the only major drug company with two drugs, Celebrex and Bextra, in the same class as Merck's Vioxx. The Food and Drug Administration said after the Vioxx recall that it will closely watch these drugs for any sign that they might also raise the risk of serious heart problems. So Pfizer faces some risks that other companies like Johnson & Johnson and Eli Lilly, for example, do not. Pfizer recently announced that Bextra use may cause a rare skin reaction and increase the risk of heart complications in patients following a high-risk surgery called coronary artery bypass graft. What's more, even though Pfizer's stock may trade at a discount to less risky peers, the stock isn't as attractive as many of its rivals when it comes to its dividend. Many investors like drug stocks for their relatively high payouts. But Pfizer's yield ranks among the lowest of the major drug stocks.  »»»

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