well porky.....guess you never have been to an amgen facility. Are they doing nothing? Yes. Actually, that is exactly what they are doing. They are being given early retirement packages that would make bankers on wall street envious. More contractors who have to perform. Smart move. That is why the majority of people approved it....hence the stock price going up.
Compare the PEG ratios. GILD has a PEG of 0.5, while AMGN's is almost 2. That's a whopping 4-fold discrepancy!
I don't think AMGN is overvalued. It's ratio is not extreme by the standards of the S&P500. But GILD has the very lowest (best) PEG ratio of any S&P500 stock based on a screen I ran using Zacks online screening tool.
So, in my humble opinion, GILD is a screaming buy at these levels, despite its nice run to date. And the market seems not to have come to grips yet with GILD's recent earnings report, which was fabulous.
Some of the restructuring is undoing the mistakes of previous management. Managers were in place that had built their own fiefdoms which have become irrelevant. Others are continuation of the move to contract out functions which had previously been done in house.
Just as in the broader economy, 20% of the people do 80% of the work, hence the natural tendency for income inequality. Not that there's anything wrong with that...
companies cut their workforce so drastically like this. What are these people doing now? Are they doing nothing? I can see laying off a small number - but over 10% of your workforce? Either management is asleep at the switch or there's been some earth shattering change that allows the company to get by with substantially fewer employees.
Amgen is "reallocating assets" What they are really doing is moving more assets overseas to the detriment of U.S. Workers. With over 20bln sitting off shore Amgens goal is to move more assets into cheaper tax areas overseas. This is not a secret, look at managements decisions and acquisitions and you can see the trend.
What a great result. Amgen could double from here. Can't wait to buy more tomorrow . Bio is on fire and so is the tech sector. If I had listened to that oglee woman I would have lost out. We should ask the oglee woman where we would be without finding antidotes for polio, malaria, aids, and without bio we would have no hip/knee replaced nor open heart nor Jarvis Temporary heart nor cornia transplant nor cure fof flu, throids, B.P. diabetics , cancer and skin disease etc. etc. Nor would we have medicine which help with blood clot after surgery. Nor would we have IT, Computers, Cars, Planes, Phones, TV, Microwave, food preservatives, refregirators, trains, ships, light , Internet etc. etc. which Oglee probably uses each of it every day.
Sentiment: Strong Buy