MF reported this morning. I only had time to read the report, but not post about it. (Needless to say today at work was frustrating, but I am going to refrain from negative talk about Pfizer corporate geniuses as they ponder, 'why on earth would productivity decline so drastically after we announced the site closure?')
In my opinion, the most interesting revelation from today's report was the breakdown of revenue per employee:
"Net revenue per employee was approximately $86,400 for the third quarter compared with $77,800 for the same period last year. At December 31, 2010 the company had 2,857 employees compared with 3,227 employees at December 31, 2009."
This is very telling considering it was a huge priority as Corzine first came in. Looks like he is getting the compensation cost structure under control. More impressive are the caliber of top new hires while improving the cost structure.
The proof is in the pudding, and we are seeing some of that pudding. So I am still very much inclined to like this story.
Needless to say, today's report was not one that justifies a great move. It is one where I expect MF to trace below 8.0, find support around mid/high 7s and then push upward. The push upward is justified as we are out of the weak 4th quarter, and entered a much stronger trading environment.
Although the probability of weakness w/in the short-term is high, I have not sold any of my shares. I maintain the trading thought I posted a few days ago. I will add 1/3 of the position when if the weakness is seen, and sell 1/2 the position when 9.50 is seen.
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