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Celgene Corp. (CELG) Message Board

  • divielover divielover Nov 14, 2013 9:19 AM Flag

    Time for a dividend

    With all these drugs and more in the pipeline, its time for CELG to start a steady 2-3% dividend.

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    • No dividends near term - definitely not in 2014...once Pomalyst, Abraxane and Apremilast are nicely into their launches and Revlimid front line approval comes I suspect 2015 is a possibility..

      As much as I would love a dividend - and I would - if William Blair is even close at $17 EPS in 2017 - we are trading at a 0.3 PEG on LT numbers - a 70% discount to our earnings growth....with that for the long term massive buybacks and spending on the best pipeline in all of biotech will earn LT shareholders infinitely better returns than a near term dividend. Sure dividend would bring a new class of investors, allow funds who can't buy now to be new CELG investors and reward long term investors who were loyal during the 5 dead yrs, the SAC attacks and The Big Lie and The Big Lie 2, but at the ridiculously undervalued price per share CELG is trading at now - buyback is a must. (Remember half the cash is overseas - hopefully Cramer is right and there will be a discounted tax holiday to repatriate in the coming months).

      Now the good news is CELG is well on its way near term to having FIVE SEPARATE billion $ a yr drugs (not counting oral aza which I suspect will get breakthrough designation and MD Anderson thinks will change medicine and be another $1 billion++ drug) and $5 billion a yr positive cash flow after ALL expenses - so there will be plenty of cash to do all of the above. Patience though with a dividend - at least 18 months to 2 yrs away.

    • Not yet - need to invest in pipeline and with stock at ridiculous 0.5 PEG on 2016 #'s that area at least $1.50 light in EPS (.3 PEG really) this is trading at a 70% discount to earnings growth - so buyback is much more beneficial...dividend will come after EU Revlimid sales start in 2015 and Apremilast is confirmed blockbuster 2015-16 imo

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