I couldn’t believe my ears. It was the night after the election and I’d invited a friend over for dinner. I thought he might be upset about the election results, but, surprisingly, he wasn’t.
You see, “Chris” is a regional sales manager for one of the biggest pharmaceutical companies in the world. His area covers four states, including Florida. And it turns out that inside the pharma industry, they aren’t worried about Obama overhauling the healthcare system.
Here’s how Chris explained it to me: If pharmaceutical companies are limited on what they can charge for prescription medicines, the demand for these drugs will actually increase. People who needed the medicine but could not afford it will now be able to. So the decline in price will be made up by an increase in units sold.
While I wouldn’t rush out and buy shares in every pharmaceutical company out there, I also wouldn’t rush to sell shares I owned either. If you are looking to add a drug company to your portfolio, AstraZeneca (AZN) and Cephalon (CEPH) both have solid balance sheets and improving price action.[Ed. Note: You may not know what the market will do under Obama’s presidency. But there are plenty of opportunities to profit – and you need to be ready when the moment to prosper arrives. Market analyst Rick Pendergraft has put together an educational program that lays out the simple steps you need to take to make money in any market condition.]