3 Ways to Make Money With Zoetis (Even If You Missed the IPO): Pfizer Inc. (PFE)

Page 2 of 2

Zoetis has good growth prospects. By retaining a large stake, Pfizer gets to benefit from that growth while simultaneously focusing exclusively on its core businesses. On the other hand, the company also could choose to sell more of its shares in Zoetis down the road. Either way, Pfizer investors should win.

3. Wait then buy someone else
Suppose that both Pfizer and Zoetis shares take off during 2013 as a result of the spin-off. What do you think will go through the minds of the execs at Merck & Co., Inc. (NYSE:MRK) and Sanofi SA (NYSE:SNY) , both of which own animal health divisions? “Me too” is one of the most common strategies in the business world.

Merck & Co., Inc. (NYSE:MRK) and Sanofi have already shown their interest in parting ways with their animal health units. The two companies attempted to form a joint venture in 2010. However, regulators in Europe ultimately threw cold water on the deal.

Our third way for making money off the Zoetis IPO, therefore, is to wait for one of these other companies to move forward with their own animal health IPO after seeing the success of Pfizer’s move. You then jump on board rather than missing out as you probably did with Zoetis. This one is certainly a longer-term strategy. It’s also an iffy one, since it depends on another company taking action. But, hey, it could work — and you’d owe a debt of gratitude to Pfizer and Zoetis.

Pet pick
These alternatives are in the order that I would recommend to individual investors. As I mentioned earlier, I like Zoetis. The company stands to benefit from increased spending on pets and from higher consumption of beef in emerging economies. You might have missed the IPO, but you don’t have to miss out on good prospects for steady growth.

The article 3 Ways to Make Money With Zoetis (Even If You Missed the IPO) originally appeared on Fool.com and is written by Keith Speights.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.



Page 2 of 2