oops, now looks to be same math Cramer used - he just forgot to tell you it's way way way way (four years) forward looking
Here is a recap of recent key analyst commentary investors should be reminded of heading in to the earnings print.
Bernstein: Gilead Needs To ‘Pull The Trigger' In Acquisition Hunt
Bernstein analyst Geoffrey Porges commented on April 21 that Gilead needs to continue remain focused on the M&A front with a bid for Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX). The analyst noted that many investors "remain heavily exposure to mid and large cap biotech stocks" and further consolidation within the industry is expected.
The analyst suggested a potential transaction would come with a $45 billion price target. Shares of Vertex at the time of the analyst's comments were trading with an approximate $30.4 billion market capitalization, and haven't moved much since then.
The acquisition would satisfy Gilead's need for $5 billion to $7 billion in incremental revenue by 2020 and that Vertex has "the best profile" to complement Gilead's existing product lineup.
RBC Places ‘Low Probability' Of Gilead-Vertex Deal Happening
RBC Capital Markets analyst Michael Yee commented on April 21 and offered an opposing view to Bernstein's analyst.
According to Yee, Gilead should have no issue with paying a price tag of $40 billion to $50 billion to acquire Vertex, but the company could (and may want to) buy "a lot of other things." The analyst suggested a better strategy would be to acquire 10 different companies at $1 billion to $5 billion each that will create more value versus buying only Vertex.
Moreover, Yee noted that Gilead had seen some negative press with its $85,000 Hep C drug in the past and acquiring Vertex's $220,000 to $300,000 drug for an orphan indication for kids may raise further questions.
Yee added that the acquisition may not necessarily fit in with Gilead's strategy as management has stated that they derive the greatest value by acquiring Phase II assets and helping smaller companies through Phase III and manufacturing.
Double the average volume and a 1% gain? Why are people jumping in? And why are those jumping out not demanding a MUCH higher price?
Hope so, but I set my stop @ 120...I dont need another Puma Bio on my hands...thnx
At lest some good news. VRTX will present at next tuesday's biotec conference. it should get a pop on friday and monday. Cramer never owns up to his bs. He guarnateed it going up $25, now he doesnt even mention it.
I thought it was going to run up to 135 or more, but it wasn't because of Cramer. He's not worth listening to, in my opinion.I've seen Vertex go down on good news too many times, I'm just happy that didn't happen. FDA may very likely make a decision before July 5,we'll get motion before that I'm thinking
hold on, vrtx wil present at healthcare conference on Tuesday. It should start going back up tomorrow. It couldn't have come at a better time.
IM NO CRAMER, BUT IT WILL SETTLE DOWN AT ABOUT $121. It should slowly rise back up as the july date approaches. Cramer would't even talk about VRTX this morning. When david fabor said his prediction of up at east $25. he said, well it was no secret that it would be approved. A no brainer, then he abruptly changed the subject to railroads. The guys a liar.
Where the stock price is heading?
TA-wise one thing but surely you see Over Bought is still Over Bought
Crazy stock. Was $135 AHs now $125. Like an idiot I bought at $130. Will we see higher prices before July 05????
i don't like to see people losing money...but this is not a surprise at all...the stock could take further retreat from here. people should look for cancer related stocks to buy going into ASCO...there are a few good ones to be in.
My wife of 37 years is away for 3 days.. I've never been happier... This '"Happiness ever after is BS"...(And we're the "successful marriage" !!!)
I never listen at Cramer again. I lose so much money now because he say it go up $25 today and stock lok like it can close DOWN.
Confucius teach that people like buy the rumor and sell the news.
next time I listen at Confucius and not Cramer!