history doesn't side with you. Gilead has made people a ton of money over any 5+ year period you pick. But stay short here at $88 and see how that works for you long term.
Did momma drop you on the head when little?
The reason Gilead missed earnings is they have lowered the prices on drugs too much.
It is essentially gone now. SSRI bought them. Ultra said TC should buy Claude back two years ago when they had a market cap of just $20m or so.
While I do agree that people are getting a bit ahead of themselves, if you look at SSRI and Claude, they have gone from $4 to over $9, and Claude has gone from $0.125 to $1.78. Turnarounds do happen.
Why do I need to do all of that work when I can just use your figure of $1.80 a pound? You put that figure out there, not me.
I was saying IF they stream and it makes the all in cost of copper $1.80, then MM will generate about $40m of profit and is worth $250m or so (maybe a tad more or less depending on the trend of copper). The rest of TC makes up the remaining $150m (moly assets, lang, Berg)
I never said streaming was a good idea, I was just using YOUR estimation of what the stream would do for MM value.
Instead of constantly falling back on insults, point out where I made a mistake? I replied to you saying they would be left with $1.80 copper if they streamed the rest, and then I used 80 million pounds of that x 50 cents profit on $2.30 market price and got $40mil. I assume all the debt was paid by the stream. $40m a year is good, but the moly assets are not producing right now. $400m value, $40m earnings, gives you a PE of 10.
If they were able to entirely pay off the debt with a stream, and it left them with $1.80 a pound copper, then MM would generate about $40m a year in profit from copper at $2.30 a pound. It would be worth about $200m. The rest of TC assets are probably worth $100m to $200m (much more if moly ever recovers). $400m gives you a share price of about $1.50?
But it is May. If the market sells off next week, Gilead probably hovers around $86 to $89.
It should be good to trade now, just need to figure out how it is going to settle out and when it will start the gradual climb back to $100 (it will eventually do this before year end).
They took a 10% stake in a company that has two blockbuster drugs with over 30B a year in revenue....what are you complaining about?
I am in this until 2019 or my bonds get purchased from me at 100+% of par.
Until then they can pay me $10,000 or so every six months and I will cheer for you guys holding the common stock.
So you think a chart predicts earnings? It may be possible if there were leaks weeks ago, but on the surface people thought they would meet or beat.
Except people who bought at 100 are selling at 88, that is what he is talking about.