Some options in money will automatic exercised based on price.
Now the earning reaction is know….what next?
Settlement Date …..Short Interest…..Avg Daily Volume ……Days To Cover
6/30/2014………. 93,715,153 ………9,625,018 ………..…..9.7
6/13/2014 ……….92,230,036……… 10,372,330…………... 8.8
5/30/2014………... 94,135,575……… 10,329,624………….. 9.1
5/15/2014 ………...98,243,605……….. 12,602,148………….. 7.7
4/30/2014………… 97,322,157………. 22,080,628………….. 4.40
Shorts are covering…..except last month
Please look at 90….91…92…93……94……..Volume and outstanding
Call Options Expire at close Friday, July 25, 2014……one more day
GILD is most Biotech funds and others Mutual funds, there are options written before the earnings surprise and wrong market reaction.
Some options were written long time ago and now GILD close to NEW HIGH, we could exercise the option and cover shorts or pay the shorts. Some may even buy the stock or go short again.
FB did the same after the earning but look at now?
Please do not react GILD day to day, the best way is weekly move and On Balance Volume.
By Christmas it will be above $100, if shorts cover more than 95,000,000 shares. And folks like us hold and not sell. Last week GILD was up 4 points, it is like KING Buffett and needs to digest the gains. The real trading will start after the weekend review.
When earning are the best ABB tops out. Now the wise minority is collecting. Please see on YouTube ABB new ventures. ABB will be working in the Middle East after all the major destruction you are watching.
This is a big move of 25 percentage, if the volume continues. I am in it for long-term. By Christmas Middle East will be back to rebuilding.
Sentiment: Strong Buy
Please look at PCLN. Down 13 on 12 shares. Foreign orders...
Wait till folks in US get up.
PBYI it was my trading account, make or lose 5 points or 45 minutes, while have my pizza with other traders,I trade lot of stocks, so you can't ponder over. I also thought GILD will be up a few points, I came close to selling at 92 after hours, but decide to hang on till weekend. Earning and technicals sometime don't work. GILD was up 4 points last week, so we get some profit taking and consolidation for a few days or weeks.
Gilead GILD earnings, released after the close, vaulted 372% to $2.36 a share, beating by 58 cents. Sales leapt 136% to $6.53 billion, topping views by $67 million.
Hepatitis C drug Sovaldi, just launched in December, generated $3.48 billion in sales, well above consensus of $2.58 billion.
Despite political and industry protests over the $1,000-a-day pill, Gilead said 47 state Medicaid programs cover Sovaldi.
Gilead for the first time gave full-year guidance that included Sovaldi sales: $21 billion to $23 billion vs. $6.9 billion last year. Subtracting its prior guidance, that implies Sovaldi will rake in $11.5 billion in 2014.
But Gilead’s whisper numbers seemed to be much higher.
“GILD reported a 2Q that soundly beat SELL side consensus, but was roughly in line with what I perceive to be buy side expectations,” wrote ISI Group analyst Mark Schoenebaum in an email to clients. He added that the new revenue guidance agrees with analysts’ estimates.
Perhaps for that reason, Gilead stock fell fractionally late, largely erasing a 1% regular-session gain.
Gilead’s other major drugs — HIV medicines Atripla, Truvada, Viread, Complera and Stribild — modestly topped consensus, except for Atripla.
In its budding field of cancer medicine, Gilead also said the FDA approved its drug idelalisib, now branded Zydelig, for chronic lymphocytic leukemia, follicular lymphoma and small lymphocytic lymphoma. Analysts expect this to be a blockbuster of more modest proportions than Sovaldi, with sales peaking at $1.5 billion in 2020.
Two other major biotechs report on Thursday: Alexion Pharmaceuticals ALXN and Celgene CELG .
Human Psychology in the Market Place
Enthusiasm or pessimism: Again, knowledge is our best defense.
Study of Crowds . . .
If you study the psychology of crowds (there are several books on the subject, like The Crowd by Gustave Le Bon, Extraordinary Popular Delusions and the Madness of Crowds by Charles Mackay, Crowds and Power by Elias Cannivetti, and The Madness of Crowds by E.S.C. Coppock), you will see how people's behavior, like most cycles in life, tends to go from one extreme to another. People become ridiculously bullish or bearish, which shows why the swings go to extremes.
A SUSPICIOUS ATITUDE IS VITAL
This is the underlying concept that can help us think straight, bull market or bear. It’s completely essential in bear markets, when appearances are unusually deceiving. The ability to think contrary is vital to making money.
It’s difficult to define contrary opinion.
One must be careful not to be absurd in its application. It isn’t simply the contradiction of every opinion encountered. Neither is it safe to assume that the majority is wrong all the time. They are likely only to be wrong when there appears to be no division of opinion. The logic of this is that life is an ever-changing thing; an opinion that begins by being quite sound dates itself like everything else, so that by the time everybody has come round to holding it, it should already be history, and the set of circumstances that originally caused it have changed.
Also since mass thinking on any matter is always tinged with exaggeration, it tends to be extremist thing. This means that a reaction must come to erase the extreme and restore balance.
Please go to the GILD Home page, either listen earnign call or down load PDF.
Antiviral product sales …..$ 6,012,1446
Antiviral product sales …..$10,520,641
You can email the company and get the answer. The stock price depends on future sales and products in the pipe line.
No one knew the news will be so good. GILD had to request for trading stop so every one gets the news.
It wiil take mutual fund and hedge funds and block trading tomorrow to determine the real price. GILD will buy shares at these bargains,
Top Institutional Holders
Price (T.Rowe) Associates Inc 2955248
FMR, LLC 2293085
Vanguard Group, Inc. (The) 1490694
Lord Abbett & Co 1376059
Citadel Advisors LLC 1022316
Franklin Resources, Inc 798805
Adage Capital Partners GP L.L.C. 5686668
BlackRock Fund Advisors 581739
BlackRock Institutional Trust Company, N.A. 567607
State Street Corporation 531298
Top Mutual Fund Holders
Fidelity Select Portfolios - Biotechnology 947211
Price (T.Rowe) Health Sciences Fund 904005
Fidelity Contrafund Inc 775936
Price (T.Rowe) New Horizons Fund 706211
Lord Abbett Securities Trust-Fundamental Equity Fund 612700
Price (T.Rowe) Mid Cap Growth Fund 450000
Vanguard Small-Cap Index Fund 442468
Vanguard Total Stock Market Index Fund 395505
iShares Russell 2000 ETF 377454
Federated Kaufmann Fund 330000
For get the earning, look at the technicals, ABB is getting good volume and block activity. Forget the fundamentals; it is a big move lasting till the end of this year.
Sentiment: Strong Buy
Yes, but a wise trader has lot of research at his disposal. If it was all surprise, a good player can afford to lose 100.000 or more a day. Try to Google search Jesse Livermore. He made millions in 1929 betting against others, but died broke.
JFK' s father shorted while Rockefeller bought US steel in 1929 crash. That is why JFK had lot of enemies.
Remember it is just the news, reality will take years.