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Brad Kenagy  

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  • Gilead Sciences: The Best GARP Stock In The S&P 500 [View article]
    I would expect that companies that have limited growth like some consumer staples companies will be hurt because investors have flocked to those stocks for yield. However, when you get a company like Apple or Gilead that has a dividend and above market growth and is trading at below the market, those are plays that investors can hide out or buy on a market correction.
    May 12, 2015. 11:29 PM | 2 Likes Like |Link to Comment
  • Gilead Sciences: The Best GARP Stock In The S&P 500 [View article]
    Thank you for the comment, I apologize for not putting an explanation of GARP, I usually don't put explanations for popular acronyms because I have been told by the editors that readers tend to be experienced investors. I have actually had articles rejected because they were "too simple".

    Anyways, GARP stands for Growth at a Reasonable Price. Here is a description:

    http://bit.ly/PBzJ8H

    If you have the time please feel free to read through the rest of the article after reading the description of GARP in the link I provided.

    Thank you.
    May 12, 2015. 11:27 PM | 3 Likes Like |Link to Comment
  • Gilead Sciences: The Best GARP Stock In The S&P 500 [View article]
    Thank you for the comment, you bring up a great point that "participants in the stock market are humans subject to the corroding influence of emotions." Stocks can stay "undervalued" or "overvalued" for years at a time.
    May 12, 2015. 07:45 PM | Likes Like |Link to Comment
  • Gilead Sciences: The Best GARP Stock In The S&P 500 [View article]
    Thank you for the comment, I am glad you enjoyed my article. The GARP screen could be adjusted to fit your own goals as well. For example, someone could remove my criteria of the current ratio, and % EPS estimate increase, and most likely will get more companies rather than just Gilead. Also. Just wanted to make sure your data was correct the dividend is $0.43/share.

    http://seekingalpha.co...
    May 12, 2015. 07:43 PM | Likes Like |Link to Comment
  • Gilead Sciences: The Best GARP Stock In The S&P 500 [View article]
    Thank you for the comment. I used the screener to compile the average PE, LT Growth, etc so I did not have to go to each stock individually. The criteria I used did not shape the result. It is widely know that in GARP investing the base criteria are:

    PEG <1
    PE < Market Average
    EPS Growth > Market Average
    Stable historical growth > market Average

    The parts I added of my own to the GARP screen have logical reasons:

    ROE & ROA above the market average to indicate the efficiecy of management, and I included the current ratio to make sure any perspective stocks were able to cover short-term obligations and I used % change in EPS estimates to include only those companies with estimates being revised Higher. When you run a screen on Zacks you enter all the criteria and then click run! and the results are shown after clicking run, and are not shown before then.
    May 12, 2015. 06:00 PM | 5 Likes Like |Link to Comment
  • Gilead Sciences: The Best GARP Stock In The S&P 500 [View article]
    Thank you for the comment. I believe Gilead stock has been subdued because of possible fears of other cheaper alternatives being selected as what happened to Gilead earlier this year. However, I believe that growth from outside the US will more than make up for any lost sales in the US.
    May 12, 2015. 05:53 PM | 3 Likes Like |Link to Comment
  • Gilead Sciences: The Best GARP Stock In The S&P 500 [View article]
    Thank you for the comment. I don't think GILD EPS will peak in 2017, I think it will be around 2019 because I saw a note from analysts somewhere that 2019 was the year the estimated Japan would reach peak sales. This does not take into account the rest of its Pipeline or any potential acquisitions they may make over the next couple years.
    May 12, 2015. 02:57 PM | 5 Likes Like |Link to Comment
  • Gilead Sciences: The Best GARP Stock In The S&P 500 [View article]
    Thank you for the comment I am glad you enjoyed my article. As I noted in my disclosure at the top of the article I am considering buying some GILD because of the attractive value the company is currently trading at given its future growth prospects, and dividend initiation. You mentioned short-interest and I looked at the data on the Nasdaq short-interest page for GILD and short interest is significantly lower than this time last year, therefore I would not expect a rally driven by shorts covering.

    http://bit.ly/1rVaAoN
    May 12, 2015. 02:50 PM | 5 Likes Like |Link to Comment
  • Gilead Sciences: The Best GARP Stock In The S&P 500 [View article]
    Thank you for the comment. From the Gilead buyback announcement: "The new program will expire 5 years after the completion of the May 2014 program. " The May 2014 program expired in April of this year.

    As for the share prices, I explained that Gilead has average 26.85% return/year over the last decade, and I applied that rate to continue for the next 5 years.

    http://bit.ly/1ctEttX
    May 12, 2015. 02:45 PM | 3 Likes Like |Link to Comment
  • The Drawbacks Of Apple's Cash Hoard Are Starting To Show [View article]
    Apple today issued $8 billion in bonds today, adding to their debt total.

    http://on.ft.com/1Jtvzas
    May 7, 2015. 10:27 AM | Likes Like |Link to Comment
  • Channeling Your Inner Activist Investor With The New Activist ETF [View article]
    Thank you for the comment. ACTX I believe will have a similar return profile to that of GURU as the activist 13F/13D filers are a subset of all hedge funds,etc that are included in GURU.
    May 5, 2015. 01:56 PM | Likes Like |Link to Comment
  • Channeling Your Inner Activist Investor With The New Activist ETF [View article]
    The chart under the "Historical Performance" Section shows the index return since its inception in 2010. I could not find any charting website, bloomberg included that has the ACTX index available to compare to the S&P 500.
    May 5, 2015. 01:55 PM | Likes Like |Link to Comment
  • Channeling Your Inner Activist Investor With The New Activist ETF [View article]
    Thank you for posting the link.
    May 5, 2015. 12:00 PM | Likes Like |Link to Comment
  • Channeling Your Inner Activist Investor With The New Activist ETF [View article]
    Thank you for the comment, that is your opinion. As @458ITALIA asked above about the Correlation to the S&P 500, i found that 41 of the 50 holdings were in the S&P 500, and the 9 companies that were not in S&P 500 were also large cap stocks, therefore the S&P 500 IS an appropriate benchmark.
    May 5, 2015. 10:39 AM | Likes Like |Link to Comment
  • Channeling Your Inner Activist Investor With The New Activist ETF [View article]
    Thank you for the comment. Currently 41 out of the 50 companies ACTX holds are in the S&P 500. The nine companies that are in ACTX and not in the S&P 500 are are listed below with their market caps, and as you can see the majority of these names are large cap stocks so they fit in with the S&amp;P 500. So to answer your question, the correlation is high (80% +)
    CVI CVR Energy, Inc. $3.51B
    PAH Platform Specialty Products Corporation $5.17B
    HOLX Hologic Inc. $9.63B
    HTZ Hertz Global Holdings, Inc. $9.96B
    FNF Fidelity National Financial, Inc. $11.57B
    AGU Agrium Inc. $15.13B
    PHG Koninklijke Philips N.V $26.48B
    CP Canadian Pacific Railway Limited $32.25B
    VRX Valeant Pharmaceuticals International, Inc. $76.50B
    May 5, 2015. 10:27 AM | Likes Like |Link to Comment
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