Conversions, Domestic corporations doing reverse mergers into foreign corporations, are becoming a key item in the corporate tax loop-hole bag of tricks. US corporate taxes are anti capital and prohibitive in doing domestic deals. This is a fact, and for you progressive tax parade marchers, stalled out growth puts the 80,000 Pfizer employees at risk.
Ian, the Pfizer CEO, said “The current M&A challenge is price, partly because U.S. tax rules give foreign buyers the upper hand.” Plus, Pfizer has complained loudly about the U.S. tax code as it stands right now. The U.S. corporate tax framework “puts all American companies at a huge disadvantage.” More reason for Pfizer to look outside the U.S. for some sort of tax-fighting buyout.
Interesting. Everyone is talking about Pfizer swaps or trades or even spin offs, no one is talking about a major foreign deal. Even though Pfizer stuffs its cash off shore, the current administration is licking its lips over going after that as well.
How about shareholders and chart technical patters. Had mercy folks. $18 to $34 in two years for a whopping 90% return. For a Big-Mamma Dow Jones Industrial stock to rip up like that is truly amazing. The reason the boss makes the cheese is due to the stress of “what did you do for me lately”. Now Ian is tagged with the task of showing the same returns over the next two years – probably an impossibility.
Regardless, the shares are breaking out to the upside and will probably continue, at least until they don’t.
SMZ
