How to join us at the Stansberry Research Conference later this month; Reader comments and the Wall Street Journal on Pfizer; A United pilot on problems at Spirit Airlines; Visiting my family

1) Of the many investing conferences I attend each year, my favorite is always our very own Stansberry Research Conference – and it's right around the corner.

This year, it will be at the Aria Resort & Casino in Las Vegas starting on October 21.

Some of our speakers this year include author Michael Lewis, former Texas Governor Rick Perry, and comedian Dave Barry.

Of course, many of my friends and colleagues are also speaking – including Stansberry Research founder Porter Stansberry... Dr. David "Doc" Eifrig... Dan Ferris... Joel Litman from our corporate affiliate Altimetry... and Marc Chaikin from our corporate affiliate Chaikin Analytics. (As you would expect, I'll be on the stage as well!)

In-person tickets are sold out, but that doesn't mean you can't still see the presentations and stock picks...

We're also offering a Livestream Pass so you can watch the event right from home – no travel required. Learn how to get your pass before sales close right here.

2) A number of readers responded to my first look at pharmaceutical giant Pfizer (PFE) in Tuesday's e-mail, and I wanted to share two comments...

First, Richard W. echoes the risk I highlighted "that Pfizer's brand has become tarnished due to its association with the COVID vaccines, which have become highly divisive," writing:

I'm just a midwest middle class conservative senior with a dwindling retirement savings thanks to the government and inflation. Everyone in my circle of friends will not take anything made by Pfizer. Until they come clean about the covid vaccine and call out the FDA about the many mistakes and calling real medical experts that what they were saying was 'misinformation' I will continue to boycott them. How can this company be in financial trouble after receiving billions of dollars from the government? Maybe it's because the majority of people no longer trust them!

Whether or not you personally agree with Richard isn't the point – rather, I suspect his views are widespread.

On the other hand, Jonathan M. is more optimistic and makes a reasonable case for why he owns the stock:

Thanks for your thoughts. A few things to consider with Pfizer although I don't think it is going to change your mind.

• Sales finally on the rise quarter-over-quarter now that COVID vaccines have been flushed.
• Seagen is supposed to add $3.1 billion in sales in 2024 and eight blockbuster products by 2030.
• They hired an analyst from Citigroup this spring, Andrew Baum, who covered PFE for a decade. He never had a buy rating on the stock. He is now the Chief Strategy and innovation officer. Hopefully combining that with [activist hedge fund] Starboard Value can get the ball rolling.
• One last product no one is talking about: a weight loss drug pill which would compete with the GLP-1 shots being offered. People would much rather take a pill than a shot and apparently it's in the PFE pipeline.
• Lastly, a 10 forward P/E multiple with a 5.75% dividend to wait while the turnaround happens is enough to keep me involved.

I'm only long from this past May at $28 figuring everyone who wants to sell has sold by now (down 50% from highs) and that not much of what I mentioned above is priced in. People are overly focused on the disaster that was the COVID vaccine.

3) Meanwhile, the Wall Street Journal had two articles this week with insightful commentary about the latest developments at the drugmaker...

Here's the first: Why Pfizer Will Find It Hard to Appease Its Activist Investor. Excerpt:

Starboard's move was surprising, [Leerink Partners analyst David] Risinger said, because Pfizer had already undertaken the obvious ways to turn around the company, including two cost-cutting programs totaling roughly $1.5 billion and at least $4 billion, respectively. Meanwhile, its $57.5 billion in debt, as of June 30, prevents the company from pursuing major deals.

Further adding to Pfizer's challenges is looming competition for some of the drugmaker's biggest-selling products, such as blood thinner Eliquis and arthritis therapy Xeljanz.

And as the article continued:

To aid in its efforts Starboard has approached former Pfizer Chief Executive Ian Read and former Chief Financial Officer Frank D'Amelio, and each has expressed interest in helping, the Journal reported.

Both men spoke by telephone with at least four board members on Sunday before Starboard's stake became public, according to a person familiar with the matter. The pair recommended during those conversations that Pfizer's directors listen to Starboard's proposed changes.

And this Heard on the Street column in the WSJ adds to rumors that Pfizer may oust its CEO, Albert Bourla: Pfizer CEO's Job Is at Risk. A Shot of Discipline Could Help. Excerpt:

When former executives team up with an activist investor to "help" a struggling company, it is often bad news for the current chief executive.

That is one implication behind activist investor Starboard Value's $1 billion stake and its push to make changes at Pfizer, which the Wall Street Journal reported has support from former Pfizer Chief Executive Ian Read and former Chief Financial Officer Frank D'Amelio. Another important takeaway is that investors are eager to see a more disciplined and focused development strategy from the company.

And as the column continues, the pressure seems to be mounting for Bourla:

"We've sensed investor frustration with CEO Albert Bourla since at least the beginning of 2023," BMO Capital Markets analyst Evan Seigerman wrote. Don Bilson at Gordon Haskett wrote that Starboard might have "positioned itself to get the old band back together with Ian on guitar and Frank playing drums." He noted that the activist effort has some "Disney vibes," alluding to Bob Iger's return to the helm of Walt Disney after his successor was ousted.

Pressuring Bourla to step down might offer frustrated investors an easy scapegoat, but pharmaceutical companies' history suggests a mere change at the top wouldn't be enough to lift the stock price over the long term.

My conclusion remains the same...

Pfizer remains in the "too hard" bucket for me – in other words, I stay away. So I would remain on the sidelines with the stock.

4) Another reader, a pilot at United Airlines (UAL), commented on last Friday's e-mail about the difficulties at Spirit Airlines (SAVE):

Now United can swoop in and buy the assets at a nice discount. United is currently interviewing and hiring Spirit pilots who have been notified of furlough notices.

I just got back from an overseas trip and flew with one of our pilot interviewers who confirmed this.

5) My dad had a health scare last Friday... so I took the bus up that evening to New Hampshire and spent five wonderful days with my parents, sister, and a family friend at our extended family's house on Lake Sunapee, where the foliage is near its peak.

Yesterday we took a final ride in The Zing, our 1907 lake launch, and then pulled it out of the water for the winter.

Here are some pictures:

Best regards,

Whitney

P.S. I welcome your feedback – send me an e-mail by clicking here.