and need another 25 millions shares or so under it regular from the market buy back. I imagine management would like to get as much as they can at current prices. I wonder who it is that sells that many shares at these prices. Cramer said on Friday that a lot of the selling is forced selling...what a great time to buy huge amount of stock back!
I wonder how high the stock would need to go for gilead to pull back...at this point an acquisition might look better. This would serve to drive the stock yet higher.
I like the May 20 calls at strike price of $100....bt them friday for ~$1.03...they have 3 and half month till expiry.
Probably part of the accelerated $5billion buyback Robin announced. Accelerated is not done at market (look it up on widepedia)...instead the company (gild) sets a fixed price for buyback to a brokerake house that shorts gild and delivers that stock to gilead immediately... This can be done within the blackout period before and after earnings.
The brokerage how then seeks to protect itself for the hugh short by stock futuresoptions. Those 50,000 calls done in one transaction protect about $450 million of the short from going over $93...Im shure the remaing $4.5 billion in the accelated with be protected somehow as well.I imagine Gild will want as much stock as they can get at these prices.
In conf call Robin pointed out that this $5billion was IN ADDITION to the regular buyback of shared at market. If $3 billion are bt back in Q1 Jan 1 -March 31 (conservative) then add $5 billion accelerated buyback plush another $1.5 billion in April 1- May 2 thats a minimum of $9.5billion buyback from Jan1 -may 2 2016. This is spelled out in detail in comf call transcript.....That will leave Gilead with an authorised additional $10.5 billion for buybacks as year goes on. I imagine as the stock goes up gilead will look more at acquisitions as the buyback get much more expensive at higher stock prices. This acquisition would in turn boost the stock higher..prosbably stopping buybacks altogether..
Here is the catalyst.....
Any liking this post say so... i dont know if its suitable or of interest to this crowd....I suggest u read case conf transcripts if u want to verify the facts in my post..
The two day lock out ends today!! I wonder how many shares Gilead will want to buy at these current prices.
They have $20 billion to play with and the company has only about $127 billion market cap
I imagine they have been delaying acquitions since Martin was planning to step down. Now all of their targets are much much cheaper than 6 months ago
probably the australia news.....is saw no evidence of it in regular media channels
TURNBULL GOVT INVESTS OVER $1B TO CURE HEP C
December 20, 2015
In a “watershed moment” in Australian history, Minister for Health Sussan Ley today announced Australia would become one of the first in the world to publicly subsidise these cures.
I had to search for it... then there is a lot of news about australia picking gilead to treat entire population to eradicate hep c...
does it have to do with walgreens news
ESRX assured its customers that Viekira pak was just a good"..they will eat that
They took away the doctor as the decider.....the doc and pharmas cant wait to jump of ESRX..they will sufferr
horrible publicity over this in additiion to numerous lawsuits....look for it in the news over a long time
will really jump on this....ESRX forced docs to accept their viekira pak eval......its just as good esrx said. Lawsuits up the ying yang for ESRX all back by doctors and Pharma companies
doesnt look so good now. Express scripts and Abbvie have been very secretive about viekira pak results... many lawsuits coming..
Many have used Gilead as a scapegoat. GILD does tons of innovation with great R&D. Others, like Abbvie,
bad rap GILD when they are the ones who are acquisition crazy. I notice Paz, the CEO of ESRX, has resigned effective next spring. Gileads Harvoni, at ~$47 K, is not overpriced at all and will save the system tons.
It was u that died....u just don't realize it yet.....u took the wrong pills!
thanks in advance