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By Jason Stipp and Jeremy Glaser | 05-02-2013 03:00 PM

The Friday Five

Five stats from the market and the stories behind them. This week: content kings, patent cliffs, and 30,000 head to Omaha.

Jason Stipp: I’m Jason Stipp for Morningstar, and welcome to the Friday Five, five stats from the market and the stories behind them. Joining me, as always, with the Friday Five is Morningstar markets editor, Jeremy Glaser.

Jeremy, thanks for joining me.

Jeremy Glaser: You’re welcome, Jason.

Stipp: So what do you have for the Friday Five this week?

Glaser: We’re going to look at $4 billion, 8%, 38%, $85 billion, and finally 30,000.

Stipp: $4 billion is the size of sales that CBS had in the first quarter. This was a record quarter for them, and it shows that content is actually doing pretty well.

Glaser: Content is king. CBS had a great quarter. Time Warner had a strong quarter with their cable networks. Comcast, which owns NBC Universal, that segment, their cable networks, had a strong quarter. This is a continuation of a trend that we've seen a very robust market for high-quality TV and movie content and that consumers are still willing to kind of pay up for those big cable bills. We haven't seen so much cord-cutting, that the content providers haven’t been able to get paid for what people actually want to watch. I think that's been an interesting trend there.

If you look at the trouble that the music industry had kind of making that transition as things started to go online. TV seems to be handling it a little bit better so far. There, obviously, are disruptive technologies that come in there, but for the most part, at least this quarter, the content was doing very well.

Stipp: On the flip side, 8% refers to the drop in operational sales at Pfizer. This is the so-called patent cliff that we’ve been expecting.

Glaser: You’re right that this weakness that we’ve seen in Pfizer is not a huge surprise. A lot of their big branded drugs now are subject to generic competition. As consumers trade down to those cheaper drugs, that’s going to hurt their sales. But for long-term investors in Pfizer, the real questions are: Is that pipeline big enough? Will they have enough new drugs or new potential blockbuster drugs coming down the line that they’ll be able to replace those sales and bring the firm back to growth?

[Morningstar analyst] Damien Conover, who covers Pfizer, thinks that the answer to that question is yes. He sees a lot of candidates that are either in late-stage trials or that are just coming to market that have the potential to be really big sellers for them. He doesn't expect to see Pfizer all of a sudden growing like a rocket ship, but he thinks they could see some pretty solid growth in the years to come, potentially starting in 2014. Then investors with that focus need to look to there, and not worry about some short-term weakness. Shares look about fairly valued right now. But if this is the kind of company, if there is a pullback, it could look interesting.

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