Oh, really? Here is a summary of GILD's return history thru Friday. All are POSITIVE numbers:
3 YRS.-- 55.4% avg. per yr.
5 YRS.-- 46.1% avg. per yr.
10 YRS. -- 26.6% avg. per yr.
15 YRS.-- 26.8% avg. per yr.
If those numbers are lousy, I want lousy every time.
Sentiment: Strong Buy
I say that $107-$108 is good entry point if one wants to begin position and add on any weakness or dip. This stock moves very quick when the news is good. Lots of competition and lots of mergers going on currently in this sector and GILD knows that they need to move quick to keep the edge ahead of the other Biotechs.
GILD always trades this way. Hit new high, pulls back around 10% then trades sideways for about a month. Then out of nowhere, it begins uptrend 2-3 points a day back to high. This should be the pattern again. If market can get back to 17000, then I think GILD gets back over the 117 level. This could occur by mid September maybe sooner. And as soon as they announce what they are going to acquire, it should pop hard.
As a footnote, in Friday's Credit-Suisse report, Triumeq continues to gain on Stribild, with 6,635 Trx to Stribild's 12,977. The launch of this drug is proceeding at substantially faster pace than the launch of Stribild.
The IBB was up only .68% yesterday, while the XBI was up 2%, which tells us that the smaller biotechs did much better than the large ones. But I'm not talking about one day's performance. With its robust cashflow, I expected this to recover to 110 by now.
I could think of a lot of words to describe Gilead, but having spent many years with this company, honesty is not one of their attributes.
Great question but as I have said before, and I will say again, until GILD has acquired a significant amount of their buy-back shares do NOT expect any accent that seemingly should mirror their corporate performance. They are buying billions - repeat - billions, of dollars worth of shares. They have no reason to to let this fly.....just yet. Repeat...just yet. Patience will reward you.
I notice that 1,328 institutions own the stock. Actually they hold roughly 95%. I have owned one other stock which was mostly owned by institutions and the results were very disappointing. There is no way I can/will compare the two companies, but it causes me little concern. Meanwhile I see the street chit chat is Bristol Myers is a potential takeover target. Bottom line? We put up our cash and take our chances, with fingers crossed and try not to go nuts over the influx of opinions.
1) "By the way, I'm long GILD and have been for the past couple of years."
2) "Notice how regardless of the good news, superior earnings, more good news, the stock does absolutely nothing."
I don't know what alternative world that you live in, but in my world GILD has outperformed any broad based index over any long period of time - two years or more. Maybe it hasn't done as well as you think it should have, but it has done very well. It seems that yoiu should be investing if you think that stocks will do just as you think that it should.
That's right, even including the Monday massacre, the stock is up over $2/share for the week. While that doesn't get us back to new highs, it's a start.
Have a good weekend everyone!
By the way, I'm long GILD and have been for the past couple of years. I also have to admit, that your posts over the last year honestly irritate me, because I always felt you were trying to bash the stock for your own personal reasons (maybe shorting GILD). But as time when on, I started to realize you're actually correct on a lot of what's going on with this stock (not the company). In other words, as you stated in your initial post, Gilead is a great company, but the stock is NOT. Notice how regardless of the good news, superior earnings, more good news, the stock does absolutely nothing. Now I know I'm going to hear "then sell and move on", and maybe that's exactly what I will do soon. I'm just puzzled at how this stock cannot gain any traction. Everyone, please notice what the stock price was exactly one year from now, and you will notice that it hasn't done anything at all.
This was once one of the "four horsemen of biotech" blah blah blah. There is about as much reason for it to be down as for Tesla to be up 2% today.
I see this weakness as being a warped market psychology.
I think that Mr. Market won't be happy with GILD until GILD makes at least 1 "transformative acquisition". GILD has had 2 blowout ER's with several more to come, but confidence in GILD's HCV franchise has waned, even as overseas sales are just ramping up. "Analysts" seem to be overlooking the massive overseas HCV sales happening now and far into next year.
GILD is loaded with cash and can make just about any acquisition that management wants, but until management does make a "transformative acquisition" or two, the market will be disappointed with GILD. If GILD's management does make such an acquisition, then the market will no longer be able to ignore GILD's outstanding fundamentals.
Sentiment: Strong Buy