There are no safe havens in the stock market. Every stock carries risk. But some less than others. This column features stocks that have shown one or more of the following characteristics: less volatility, better earnings, larger market caps, safe and increasing dividends. In these times of turmoil, our goal is to show readers better opportunities for investing with fewer risks.

December 31, 2011 - Merck & Co., Inc. (MRK-NYSE) provides various health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. The company's Pharmaceutical segment provides human health pharmaceutical products, such as therapeutic and preventive agents for the treatment of human disorders in the areas of bone, respiratory, immunology, dermatology, cardiovascular, diabetes and obesity, infectious diseases, neurosciences and ophthalmology, oncology, vaccines, and women's health and endocrine. This division also offers human health vaccines, such as preventive pediatric, adolescent, and adult vaccines.

The Consumer Care division develops, manufactures, and markets over-the-counter drugs, foot care, and sun care products. Its over-the-counter product line includes non-drowsy antihistamines; treatment for occasional constipation; decongestant-free cold/flu medicine for people with high blood pressure; nasal decongestant spray; and treatment for frequent heartburn. This segment's foot care products comprise topical antifungal, and foot and sneaker odor/wetness products; and sun care products include sun care lotions, sprays and dry oils; and sunburn relief products.

The company serves drug wholesalers and retailers, hospitals, government agencies, physicians, physician distributors, veterinarians, animal producers, and managed health care providers, as well as food chain and mass merchandiser outlets in the United States and Canada. Merck & Co., Inc. was founded in 1891 and is headquartered in Whitehouse Station, New Jersey.

Latest News:
From JP Morgan Chase's Asset Managment group: Merck is trading at a forward PE of just 9.9x, a discount to other major pharmaceutical companies. It also has a very attractive dividend yield of 4.5%. One of the reasons for Merck's lower valuation is its weak pipeline in terms of dollar contribution. However, one should note that Merck actually has the highest number of potential new launches and the least patent exposure in the group. Strong commercial launch of Victrelis and strong data from pipeline assets (i.e. Odanacatib, Tredaptive, Anacetrapib) could provide an upside.

Expectations:
- For fourth quarter: 95 cents vs 88 cents 2010
- For full year 2011: $3.75 compared to $3.42 in 2010
- For 2012: $3.83

Important Numbers:
- Forward P/E: 9.86
- Price to sales: 2.4
- Price to book: 2.09
- Operating margin: 25.87%
- Profit margin: 8.84%
- Return on equity: 7.52%
- Return on assets: 7.22%
- Revenues for last 12 months: 47.85 billion
- Total cash: $15.58 billion
- Cash per share: $5.11
- Total debt: $18.15 billion
- Total debt to equity: 31.51%
- Current ratio: 2.06
- Book valuer per share: $18.07
- Beta: .54
- 52 week change: - 4.19%
- Shares Outstanding: 3.05 billion
- Float: 3.05 billion
- Held by institutions: 74.4%
- Dividend: $1.68
- Annual dividend yield: 4.5%

- Company Web site: www.merck.com

-  Ted Allrich