Did anyone listen to me? Well now watch the huge overselling of all biotechs as the tide goes out. Wait until next Monday to pick up the jewels from the ashes.
You shouldn't group GILD in with the rest of the mentioned stock. Compared to the other stocks mentioned, GILD is really cheap here. Just look at the numbers for growth and PE and let me know why GILD is at less than half of the PEG of REGN or BIIB and at 20% PEG of CMG!!
He is all you say but he happens to be right about BIIB being a sell now. No stock goes parabolic in days and stays up no matter what the story. And, let's face it, BIIB will not benefit from the new Alzheimer drug until 2018!! Does this warrant a $25B run in market cap? I say not. Cramer is correct for once.
Anything less than $120 a share would be a travesty. EOG can be a lot higher than that when oil comes back.
The way shares are trading, writedowns look to be 90% of all assets on balance sheet. Anything less than 90% writedown and CHK will be off to the races and above $20 in days.
I hope so. The garbage would then be known quantity and thrown out. Only lean and productive assets will remain which mean huge productivity to be reflected on financials once oil and gas even begins to recover. Worst is if CHK does a small writedown and everyone realizes the problems are yet not quantified. Thanks for point this out CParker!!!
Yes but the stocks will anticipate it in advance and we will see moves up prior to seeing the effects of the production oversupply subsiding.
And don't think Icahn, Soros and other hedgies are not aware of this and want to pick up dirt cheap CHK equity soon...
Whatever happens, the sell off in CHK seems to be based on one thing, AMac wants cash and he's willing to sell at ANY price. CHK will be a lot higher in a few months once this unusual and short-term factor subsides.
Please explain this to me: VRX buys company X at S10B. VRX buys the company by borrowing. So it's debt and goodwill go up about the same. Then VRX valuation increases by more than $10B!!?? How's that work? It's not in any accounting or math class I ever took!
So you're saying borrowing $16B and taking on $20B of goodwill and intangibles is sound business? And, the fact that VRX needs to keep borrowing and ballooning debt and goodwill on it's balance sheet to keep going is fine? OK, I'm sure you inherited your investing funds. I worked hard for it and don't want to see it evaporate because VRX couldn't find it's zillionth acquisition and therefore failed.
It is a "roll up" company. Whatever lipstick you put on this pig, do it with the knowledge that once the HFT crowd moves on, this thing will crash. There is billions of dollars of premium from prior company purchases and that's a fact. VRX has almost no R&D and that's also a fact. This business model has NEVER worked. Why is this time different? Explain intelligently and please don't say Cramer likes it so it must be good!!
The stupidity of the masses never ceases to amaze. This company is buying growth at a high premium. And yet, they are being bid up as if these guys are geniuses. They have almost no R&D. They will keep buying until they're caught and then... COLLAPSE!! I recall a number of companies with this business model a few years ago - anyone remember Worldcom? How about AOL? How did those businesses do? Anyone remember?
Rumors are flying and as reported by Financial Times, execs met a couple of weeks ago for a suspected take-over bid. So Murdoch is looking to expand his media and DISCA with it's tremendous content producing machine would be a perfect target. Makes sense if you think about it. Only question is how high a premium should us shareholders agree to?
The corner gas station said they don't take AMEX!! Oh no! That means another Billion of market cap to come off...
It's a good thing it beat earnings handily. Oh! Wait! What? It missed earnings? Ah well that explains the huge 75% spike in the past 4 months. I can sleep better now as a long shareholder of this company.