Here's the thing, many doubters say two things that will hurt Gilead, one is a near impossibility based on precedent, the other is possible, albeit a minimum several years out.
First, the doubters seem to think that the Govt will force Gilead to lower the price of Solvadi either through decree or through some governmental process. This would and cannot happen. It would completely turn the entire biopharmeceutical industry on its head and practically decimate it. It would be the worst kind of govt interference the U.S. has ever contemplated. Two, the special interests/lobbying involved has too much power and influence for this topic to get beyond just a conversation.
Second, the idea that the PBM's will have an effective coalition with insurers is just nonsense, its good for PR, but that's all. They can say "we're on your side" but they know it's a cheap and inexpensive way to achieve goodwill from consumers and the regulators. If the govt approved Solvadi and it is the best standard of care, the insurers/PBMs would never get away with denying their members this drug, it would be again, unprecedented.
Third, in the instance of PBM's having a charter/mandate to lower costs, it might be noted that was created to take advantage of generics and biosimilars. BUT, since it is widely accepted that Solvadi is the clear best of breed therapy for Hep C, they don't have a leg to stand on. Fourth, let's not forget what we're really talking about, we're talking about what is best for the patient. God forbid, if I had Hep C, I'd like access to Solvadi, and certainly would be livid if a PBM said, "no, you get PEG, and like it"
Regarding competing therapies, which there are many, ALL of them still need to go through clinical development and approval which are years away, and some much more.
The doubters are hoping for two things to happen, one is a near impossibilty, the other is at a minimum several years away, and not likely to affect any est. EPS numbers for years.
yeah, I have some thoughts.
GE has or attempts to jettison just about every business they can think of. First it's Genworth, then plastics, then some leveraged portfolios,then Credit cards, then Appliances, then what else?
And what do we have to show for it?
The better route is to split up this company and let each business operate on its own. We will all be better off.
Conglomerates DO NOT WORK.
Until they break this company into at least 3 or 4 parts, this is a LOSER.
As for Appliances, by the way, if they spun it off to shareholders and let them run themselves, I'm sure they could be a great business.
people are finally waking up to the fact that GILD is the cheapest major pharma in the world by a huge amount.
Applying a market multiple PE on GILD gives us $140.
And that's being conservative.
based on every major pharma's PE multiples, Gilead should be trading closer to $140 and possibly as high as $180
$90 is a joke and I just bought more today.
Solvadi will be the all-time blockbuster drug in history. It's ramp is already unprecedented. EPS for next year is estimated at $8.
Sentiment: Strong Buy
I agree, except for Exxon Mobil, that number is stratospheric. I do think we could see a 200 billion market cap if all goes right, that would put shares close to $135. Cisco at one time had a market cap of about 450B if memory serves, but as for a large pharma, I think the largest number I've ever seen was around 250B.
Can anyone dispute this?
I agree. And this nonsense about "mideast carriers" elbowing in AALs gates or whatever is just ridiculous.
I cannot think of a more stupid thing to say.
and by the way DAL is trading at 12X 2014 EPS, whereas AAL is about 7. I thought it's a matter of agreement that at worst, AAL is AT LEAST as good as DAL, which if true means at the DAL mulitple, AAL should be trading at near $60.
But since we (or most analysts) think AAL is a better run, better prospect airline, why on earth would you say moving up from the current $42 is going to be difficult?
you're talking out of both sides of your mouth.
Bottom line is Delta is not AAL, and based on 2014 and 2015 estimated EPS, AAL is still very cheap, and arguably, the best single value play in the S&P 500.
If it isn't, tell me which is better? Possibly Gilead, but that is riding entirely on Solvadi.
You say it's going to be difficult for AAL to move up at less than 7X 2015 EPS? What?
This is a industry growth story and AAL is at the forefront along with LUV.
I think many people are going to be very sorry they sold here, especially when at the current market multiple, AAL could be well north of $100 in 2015.
Sentiment: Strong Buy
it would never pass European regulators.
I still can't figure out why CNHI is mired in a news desert. For such a large important company you would think it would at least occasionally be in the news.
I'm not sure what to think of this company. One thing is for sure, they have decimated their brand awareness by calling themselves CHNI and not "Case New Holland Ind."
if I were running things, the first thing I would do is change the name to Case New-Holland Ind. and set aside a few million for brand awareness, and do a couple roadshows.
Pelt understands that BK is the undisputed world custodian investment services leader.Its AUC is nearing 28 trillion. They are the largest clearing and settlement firm in the world, and they are either 1, 2, or 3 in virtually every back office operation in the world like collateral,and other broker dealer services.
These business have a pretty wide moat and basically operate like an oligopoly between State Street, JPM and a couple others.
wealth management should be spun-off, which is probably what he'll be agitating for.
Suncor is grossly undervalued.....
EPS estimates continue to get revised upward.
BMO, Barcap and others seems to agree.
I say shares go much higher, perhaps breaking $50 later this year.
BK is not rising due to anticipated rate increases. It is rising because they are finally getting serious about SG&A control which is has been the achilles heel for this company.
The Supreme Court all but guaranteed that Aereo becomes nothing more than a footnote the annals of broadcasting.
This is a huge, albeit expected win for the broadcasters.
at least he spells flush and pound correctly.
he should do haiku, maybe I'll try...
Shorts are pounding AMAT
Flushing and Pounding and laughing out loud
Tomorrow they'll do it again,
Even though I am up significantly, if we break $50, I'm doubling up, as I've found stocks that break $50 as probably the most bullish technical there is. It is very rare for a momentum stock to break $50 and fall back.