So I have been trying to get a grasp on the pharmaceutical industry.  I have had extensive research on Merck and their financial position compared to the competitors over the past year and it does seem that the competition has the edge.  I find it extremely difficult to value a pharma stock because of their substantial R&D expense (Merck’s 25% of revenue was given to R&D in 2016 and had an industry lowest 58% RORC along with lowest operating margin).  Though it is a Dow stock, I do not ever see a reason to buy the company with poor earnings growth with cash invested in their pipeline.  However, it seems that the only way to make gains is through headline exposure.  For example, AstraZeneca share price went up 9% on 5/12/17 on a press release that their cancer drug went through approval by the FDA.  I was just wondering what you guys think on the pharma industry and how you evaluate such a tough stock.