Just curious what others are doing at this point in time. I did purchase more shares of RCS because it appears to be at a fairly good discount. Stress the word, "appears." lol. I also purchased DLINX given how it's performed YTD. It seems to be positioned fairly well moving forward with interest rate uncertainty. As for stock funds, I'm holding my positions but I did notice that the small cap value sector is getting beaten up.
Edit: RCS is PIMCO Strategic Income - not sure why it appears with a different name on MFO.
Comments
"Assiduity is the ability to sit on your ass and do nothing until a great opportunity presents itself".
-Charlie Munger
Under present circumstances, "I like to watch."
I am, of course, presuming that a rebound is coming is energy, though I am willing to wait a couple years for it...
http://www.cnbc.com/2015/07/28/gilead-sciences-earnings-.html
Reports Q2 (Jun) earnings of $3.15 per share, $0.44 better than the Capital IQ Consensus Estimate of $2.71; revenues rose 25.8% year/year to $8.22 bln vs the $7.59 bln consensus. Also raises guidance for FY15 product sales.
http://blogs.barrons.com/stockstowatchtoday/2015/07/28/gilead-sciences-big-beat-big-gain/?mod=yahoobarrons&ru=yahoo
Shares of Gilead Sciences (GILD) are up after the biotech giant easily topped earnings and revenue forecasts.
Evercore ISI’s Mark Schoenbaum says “Gilead just put up what appears to be an awesome quarter.” He continues:
And they raised revenue guidance to where Street already is. Expenses came in lower, and they lowered R&D guidance for the year (this company tends to be conservative, so for them to raise revenue guidance this early in the year speaks volumes).
Mr. Market wants to see M&A activity from GILD. I prefer that GILD mgmt. do what is best for GILD. Can't argue with the numbers and the raised forecast (again).
"What we're seeing come through is an under appreciation of all the hepatitis C revenues available outside the U.S.," said RBC Capital Markets analyst Michael Yee. "The company raised revenue and lowered expense guidance. You can't ask for better than that."
S&P CAPITAL IQ REITERATES
STRONG BUY OPINION ON
SHARES OF GILEAD SCIENCES
Recent Price: $113.07
Recommendation:
FIVE STAR BUY [Highest Rating]
We raise our 12-month target $12 to $155 on below peers 13.9X our revised 2015 EPS estimate of
$11.15, up $0.95. Q2 EPS of $3.15 vs. $2.36 is $0.65 ahead of our est. Sales, driven by a robust $4.9B
in Sovaldi/Harvoni hepatitis C (HCV) sales, rose 26%. We see GILD maintaining dominant 90%+
HCV market share in the U.S., but we see new HCV patients moderating in H2 from significant
uptake in Q1 and some payer restrictions. We see solid growth in Europe, including France where
price negotiations just finished and we see large Japan opportunity, which approved Harvoni in
July.
Jeffrey Loo, CFA
07/28/2015 17:56:55
After all, this thread is titled, "Anyone buying or selling at these levels?" and I posted my replies.
That appears to be the opposite of the "finger in the wind" approach. I've tried both. But you can expend an awful lot of energy buying and selling based on the way the wind blows ... And I'm not convinced you gain that much over the long run. (maybe an ulcer)
Look at Celgene, which has really kind of spelled out what the next 5 years look like, complete with projections and a number of recent purchases/partnerships. Celgene is trading at nearly a 50 p/e.
Gilead, which has really not spelled out what the next 5 years looks like, is trading with about a 13-14 p/e and has just had two quarters where the analyst estimates weren't even close to the beat that the company delivered.
If Gilead makes a "transformative" purchase (and their two major purchases have resulted in enormous success) or even a series of small purchases then would it stand to reason that Gilead should deserve to trade at a higher multiple? I think so. Is Gilead undervalued at present time? I think so, too. The market/valuation is acting like there isn't any pipeline at all and is basically ignoring growth internationally. The company has nearly $15B in cash.
The company is certainly not without risk, but it has taken in a lot of cash and management should have - at this point - proven themselves quite capable, given their track record. With the valuation where it is, I'm not buying anymore than the already large position, but I do feel very comfortable holding it and that there is a margin of safety with the valuation where it is. The dividend helps, as well.
I'm not expecting Gilead to repeat its past performance. I simply see what I believe to be a very undervalued stock that I think could do very well over time (and potentially grow the dividend.) I think it's gone from a volatile biotech to something that looks and feels more like a buy-and-hold stock.
http://blogs.barrons.com/incomeinvesting/2015/07/30/linn-energy-there-goes-the-dividend/?mod=yahoobarrons&ru=yahoo
I most likely will replace SGGDX with FMFAX to bring my materials sector holdings back up to a five percent target weighting within my portfolio sometime in the near future. I am in no hurray to do this though; and, perhaps it will become one of my fall special investment themes.
Something doesn't feel right and August/September are usually weak months. I have sold all individual stocks that have high(er) betas than the S&P 500 and locked in gains in my few winners.