Merck (MRK) Update Following Oversold Call

Recap: Pre-Open 8.56 GMT 18th June 2009 “Using some traditional measures of value MRK, Merck Pharmaceuticals, looks oversold.

1. Forward looking price to earnings ratio of 7.26
2. More than 5% of stock in the hands of shorters
3. Dividend yield of 6.14%
4. Relatively weak 14 day RSI
5. Return on equity in excess of 30%
6. Profit margin in excess of 25%
7. Average analyst target price $31.50″

Merck and sector as at close of business 18th June 2009

Merck, Healthcare close of business 18th June 2009

Merck (MRK) Oversold

Using some traditional measures of value MRK, Merck Pharmaceuticals, looks oversold.

1. Forward looking price to earnings ratio of 7.26
2. More than 5% of stock in the hands of shorters
3. Dividend yield of 6.14%
4. Relatively weak 14 day RSI
5. Return on equity in excess of 30%
6. Profit margin in excess of 25%
7. Average analyst target price $31.50

Data and chart source: Finviz

MRK as at close 17th June 2009

The writer holds no position, directly or indirectly in MRK.