By that measure EVERY STOCK in the IBB is broken, too.
When a sector rotation starts, all will improve.
Revenue expectations for 2016 vs 2015 are essentially flat, and at the moment there's nothing to indicate that 2017 will be any different.
BIIB was at about 11x sales before it got hammered.
JNJ's market cap is roughly 4x sales. GILD is roughly 5x sales. Absent some new significant drug(s) in the pipeline, I don't GILD going past a market cap of 10x sales (or 200 billion). CELG is at 11x sales, and I don't think that any other similiar large company is any higher than that.
Gild ain't going to a $450 billion market cap, and probably not to $300 billion, either.
$200 billion, maybe.
it ain't getting to 79. Both GILD and the DOW are now oversold. I expect big gains within 2 days. Whether either can hold the gains is an entirely different story.
"The market is heading for the double bottom."
The Dow at around 15,600 would be a double bottom. That's down somewhere around 450 points from here. Is that your prediction?
" I think we're in for a nice rise (for a change)."
Like what happened AH?
Market cap limits GILD's share price growth. That's the sure bet.
Some of those "speculative stocks" will grow multi bagger amounts for shareholders -- but not GIL:D.
GILD was a speculative stock in the early part of the century. It grew about 15x in share price between than and now. It won't ( CAN"T) do that again.
Dopey, you do realize that last year at this time that the 2015 estimates were flat to 2014 estimates -- don't you?
Then what happened?
It's not really a complete disconnect. You see, if the world goes into recession, that means less revenue for the governments that buy GILD's products. IF governments (except for the US apparently) have less revenue, they spend less.
It appears that the DOW wants to test the 15,666 low of last week (666, how appropriate). If that falls, then next support if the February, 2014 support at about 15,400. If that falls, it's called a bear market and the next support is Sept., 2013 at about 14,800.
I don't think we're headed there, but, who knows? The DOW is NOT currently oversold.
GILD's going in the same direction as the market.
El Nimo??? That's pretty funny.
Besides, there's not one weather model that I've seen that agrees with you.
If you don't have a magic to look in the future, how can you say "it looks like there will be good news friday?