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FYI: (Click On Article Title At Top Of Google Search) Nasdaq bubble fears are back. But this time around, the biggest dangers may not involve technology stocks.
Instead, some investors are looking askance at biotechnology stocks, a sector that wasn’t nearly as developed when the Nasdaq Composite Index set its record close in 2000 of 5048.62.
I'll keep buying GILD with a forward p/e under 10, a dividend coming up shortly and a company that had 12.8 billion in operating cash flow last year. The funny thing is that I don't think any of the biotech majors are richly valued and Gilead is quite reasonable. It's the smaller companies that I think are expensive.
Gilead's CEO being named "CEO of the Year" by Morningstar last year was a little concerning, but I'll continue to own it as a large position.
@Scott - almost took a toehold at the closing but since it's almost the end of the month (or quarter) and fund managers are playing games with positions and holdings I'm going to let that shake itself off first. GILD has definitely been on the radar though. Do you think they are done splitting shares as has been their MO up to this point?
@Scott - almost took a toehold at the closing but since it's almost the end of the month (or quarter) and fund managers are playing games with positions and holdings I'm going to let that shake itself off first. GILD has definitely been on the radar though. Do you think they are done splitting shares as has been their MO up to this point?
I don't see a split any time in the foreseeable future. There is a $15+B buyback in place, as well as a 43c quarterly div starting soon.
"Gilead Sciences, Inc. (Nasdaq: GILD) announced today that the company’s Board of Directors has authorized a dividend program under which the company intends to pay quarterly dividends of $0.43 per share, beginning in the second quarter of 2015, subject to quarterly declarations by the Board of Directors.
The Board of Directors also approved the repurchase of up to an additional $15.0 billion of the company’s common stock. This new program is in addition to the currently authorized three-year $5.0 billion repurchase program (authorized in May 2014). As of December 31, 2014, approximately $3 billion remained in the May 2014 program. The new program will expire 5 years after the completion of the May 2014 program. Purchases may be made in the open market or in privately negotiated transactions from time to time, as determined by Gilead’s management and in accordance with the requirements of the Securities and Exchange Commission"
Gilead starting to look like the Amgen of 10-15 yrs ago. Maybe better. Nice. Individual companies, for the foreseeable future, are definitely the investment to make.
As for the rest, well, biotech sector was down -12% today. Now that the Fed has stopped their QE magic tricks, all levitating bodies with phoney $1B+ cap but P/E= N/A will crash to the stage, sooner or later. There will be tears.
@catch22. Ha! I certainly didn't intend that, unless they have finely-sculpted legs, in which case I need not apologize for revealing something attractive on a day like today. Yuk! But you are correct about the -5 finish--- the 12% figure is the decline from the biotech sector high made 3d ago, so perhaps slightly smaller negative number on the slope. After Friday's close, this might be a good weekend to check out our favorite HC funds to see how they fared this week viz-a-vis how much biotech they carry.
Comments
Gilead's CEO being named "CEO of the Year" by Morningstar last year was a little concerning, but I'll continue to own it as a large position.
http://www.investopedia.com/stock-analysis/032315/could-gileads-dividend-have-additional-upside-gild.aspx
"Gilead Sciences, Inc. (Nasdaq: GILD) announced today that the company’s Board of Directors has authorized a dividend program under which the company intends to pay quarterly dividends of $0.43 per share, beginning in the second quarter of 2015, subject to quarterly declarations by the Board of Directors.
The Board of Directors also approved the repurchase of up to an additional $15.0 billion of the company’s common stock. This new program is in addition to the currently authorized three-year $5.0 billion repurchase program (authorized in May 2014). As of December 31, 2014, approximately $3 billion remained in the May 2014 program. The new program will expire 5 years after the completion of the May 2014 program. Purchases may be made in the open market or in privately negotiated transactions from time to time, as determined by Gilead’s management and in accordance with the requirements of the Securities and Exchange Commission"
http://www.gilead.com/news/press-releases/2015/2/gilead-sciences-announces-43-cents-quarterly-dividend-program-and-15-billion-share-buyback-program
As for the rest, well, biotech sector was down -12% today. Now that the Fed has stopped their QE magic tricks, all levitating bodies with phoney $1B+ cap but P/E= N/A will crash to the stage, sooner or later. There will be tears.
3/25 POAGX %change= -2.78% !
Don't fully scare the investing pants off of everyone in the bio/healthcare sector........
Monitoring through the day, the bio sectors kept moving down, and + or - a tenth or so; most finished about -5%; not -12%.
They'll come back, IMO.
Take care,
Catch
But you are correct about the -5 finish--- the 12% figure is the decline from the biotech sector high made 3d ago, so perhaps slightly smaller negative number on the slope.
After Friday's close, this might be a good weekend to check out our favorite HC funds to see how they fared this week viz-a-vis how much biotech they carry.