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Gilead: Rising Short Interest Provides Yet Another Reason To Own The Stock
- Gilead Sciences is succeeding beyond the wildest dreams of its bulls as of only eight months ago.
- Its forward P/E is low relative to the market, thus incorporating caution about the sustainability of profits from its hepatitis C franchise.
- Yet the shorts have established a significant and growing position in the shares.
- I take that fact to be yet another attractive feature of GILD shares, especially in view of the latest newsflow on Gilead.
Supernus Finding Success, Looks Undervalued
- Supernus is a niche pharmaceutical company that brought two products to market last year.
- It announced an upside surprise this week.
- An intelligent business plan allows investors more than one way for the stock to appreciate substantially.
United Therapeutics: A Low P/E Biotech With Potential For Further Rapid Growth
- United Therapeutics recently reported strong Q2 results.
- Investors have worried about possible generic competition to its lead product, but the company argues it will likely lose little business should it come to pass.
- A strong pipeline, debt-free finances, and experienced management make this 10X P/E company's stock interesting, with the launch of Orenitram providing upside potential.
- The imminent freedom from paying a 10% royalty fee on its lead products adds to the upside potential in this stock.
- Several risks are present, including a probe of UTHR's marketing by the Office of the Inspector General.
The Case That Regeneron May Be Significantly Undervalued
- Regeneron announced an upside surprise for sales of its lead product Eylea this week.
- It has a powerful pipeline and important collaborations with Sanofi and Bayer HealthCare.
- The combination of high R&D spending and elevated pre-launch expenses for its late-stage cholesterol reducer alirocumab means that P/E is the wrong metric investors should look at.
The Case That Our Investment Dollars Will Be Treated Well In Dollar Tree Stock
- Dollar Tree has been a very successful company that has grown both by growth and acquisition.
- It has announced a transformational deal, a merger with/acquisition of Family Dollar.
- I view this deal as promising, especially in view of the two year consolidation in DLTR that has brought its P/E down from its 2012 peak.
A Re-Analysis Of Gilead After Q2 Results And The Early Idelalisib Approval
- Gilead Sciences announced Wednesday that it had another great quarter.
- Sovaldi sales met all but the very most optimistic projections.
- The rest of the company is also in gear.
- A large short position and strong business prospects make Gilead a stock that I find to be very attractive, especially in a high-P/E market.
Biogen Idec Beats And Raises: Reassessing Its Prospects
- Biogen Idec crushed sales and earnings estimates in Q2.
- The stock has surged but remains off its highs of this winter.
- With robust growth ahead and a leader in a secular growth field, Biogen Idec is, I believe, an attractive stock at current levels in the $330-$340 range.
Biotechs Have Their 'Irrational Exuberance' Moment: Time To Buy More?
- The Fed has now complained of overvaluation amongst smaller biotech stocks.
- On this news, large cap biotechs were slammed as well.
- This is reminiscent of Alan Greenspan's "irrational exuberance" comments in late 1996, a great buying opportunity.
Evaluating Biogen Idec After The Sell-Off
- Biogen Idec sold off last week on Federal Reserve concerns about valuation in smaller biotechs.
- This large company generates large amounts of cash, despite spending heavily on R&D.
- This article explains why I look at Biogen Idec as a core holding within the biotech universe.
Buying Big Blue On A Clean Quarter And Record Q2 EPS
- IBM had a clean quarter, with a mild EPS beat and a sales beat.
- It reiterated and possibly slightly upgraded guidance for the second half.
- Several parts of its business may have bottomed, and the partnership with Apple may suggest new creative thinking at IBM.
- The shares now look attractive to me, though a turnaround has not happened yet.
Taiwan Semiconductor Still Dominates; Buying The Sell-Off
- Taiwan Semiconductor sold off sharply after reporting a seemingly good quarter with good guidance for the rest of 2014.
- Some current news regarding competition may have led to profit-taking following its strong stock performance the past several months.
- This article reviews where I see TSM now and reiterates the bullish view of the stock I first propounded three months ago.
It May Be Time For Yahoo's Board To Shop The Company
- Yahoo! is a famous name that is always trying to turn around.
- It has reported a disappointing Q2 and forecast a weak Q3.
- My take is that the company may be worth more dead than alive, and the board should solicit bids.
The Investment Case For Everest Re, A Low-Beta Reinsurer
- Everest Re has been a strong performer in its 19 years as a public entity.
- The stock has strong value characteristics.
- Analysts and successful value funds both give RE two thumbs up, yet few individual investors own this name.
Verizon Provides A Positive Pre-Announcement; Why I Think The Stock Could Surprise To The Upside
- Verizon Communications has commented positively about its Q2 results.
- It sounds as though operations were strong in several areas.
- The ongoing surprise in longer-term interest rates may make Verizon stock appreciate nicely.
A Pre-Earnings Update On Gilead
- Gilead Sciences is a, or perhaps the, leading antiviral company with several other areas of focus now.
- Quarterly earnings are pending soon, but they may not reflect or predict the longer-term value of Gilead shares.
- Recent developments continue to keep me bullish on this company's future, some of which are discussed herein.
Making The Case For Teva
- Teva Pharmaceuticals has been in stagnation mode for several years.
- Its lead profit center, Copaxone, is under imminent threat from generics.
- Yet, it has turnaround characteristics, and Copaxone may turn out better than feared.
- Overall, I rate TEVA as a reasonable "buy" here to gain exposure to secular growth trends at a low valuation, with the possibility of a takeover if operations go poorly.
Portola: A Small Biotech Stock That Could Double - And Then Double Again
- Portola Pharmaceuticals is an 11-year old biotech-biopharma company operating in the heme-onc field.
- Its specific area of focus involves Factor Xa inhibition.
- Its most exciting product is andexanet, a universal antidote to bleeding caused by inhibiting Factor Xa.
- While there are numerous and serious risks, the upside from andexanet appears reasonably well-defined to me.
Why This Bear On IBM Is Moving Toward A Bullish Posture
- IBM stock has become controversial, with the bears getting aggressive and going against lots of fervent supporters of the shares.
- IBM shares have massively underperformed the market over the past two years, and their time may be coming.
- Yet, the fundamentals suggest the stock could well be overvalued and that IBM could lead a fresh bear market to the downside, if the current bull market gives way.
- Because of IBM's worsening underperformance plus fundamental factors, I have moderated my bearishness on IBM, and I'm now looking and hoping for a reason to go long this name.
Vertex Soars On Phase III Trial Results: Assessing The Upside Potential From Here
- Vertex Pharmaceuticals announced positive results from Phase 3 trials of a combination regimen for cystic fibrosis.
- The stock has soared, and the company trades at a very high multiple of current sales.
- Vertex has had disappointing outcomes with prior drug products it developed, but it may be poised for significant success now.
Analyzing The Hepatitis C Market Size: Why It May Have Bullish Implications For Gilead
- Hepatitis C has suddenly changed from a chronic illness to a curable one.
- Given that it is much more prevalent than HIV, the market opportunity to provide the cures is large.
- This article discusses some of the many variables that affect investing decisions in approaching this market, with emphasis on the market leader, Gilead Sciences.
Same Stuff, Different Quarter: Oracle Is Attractive Again After An Earnings-Related Sell-Off
- Oracle has missed sales and EPS expectations.
- Yet, the stock is a free cash flow king, and is fighting to gain ascendancy in high-growth areas.
- Founder and CEO Larry Ellison rarely sells, and I want to invest alongside him.
Why This Physician Is Bullish On Celgene
- Celgene has been one of the great growth stocks of our era.
- The company has a bulging pipeline on which it is overtly bullish, and management has earned respect.
- Based on prospective earnings by 2017, the stock is undervalued.
- In addition, CELG could be an attractive takeover target.
Stock Market And Housing Stock Implications Of Trends In Lumber Prices
- Lumber prices have been declining, as have those for panels.
- Since the Great Recession ended, similar declines have preceded stock market sell-offs accompany the end of QE.
- Thus the question arises as to whether the end of QE, due this fall, will mark a market top.
Is There Too Much Complacency In The Stock Market?
- Many bears, short sellers and potentially objective news reporters keep saying there is too much complacency.
- Others say this is the most hated bull market in history, so we should be bullish.
- This article reviews matters and concludes that stocks are indeed risky, but great companies are still selling for reasonable prices; I want to continue to own them.
Financial Stresses Appear In Fracking Companies: Investment Implications
- Boom times in oil and gas production via fracking may be giving way to some degree of a bust cycle.
- Bloomberg News has very recently been publicizing its findings about these problems.
- Macroeconomic considerations now come into play, given the importance of domestic energy production via unconventional means.
Con Ed Provides Income, Safety, And - Surprise! - Price Appreciation Potential
- This article evaluates Con Ed as an undervalued dividend stock.
- ED is one of the safest stocks in Value Line's universe of 1700 major companies.
- Transitory events may have depressed the shares to below fair value.
Recent Developments In Gilead's Non-Hepatitis C Programs
- Gilead Sciences has had so much publicity over Sovaldi that investors may be paying insufficient attention to the rest of the company.
- This article updates readers about new developments at Gilead.
- The news flow suggests to me that the upswing in the stock price may have strong "legs".
Bloomberg Business Week Joins DoctoRx In Warning About The Risks In IBM
- IBM has been struggling for at least the past two years.
- In part because Warren Buffett is a major shareholder, IBM stock has held even despite steadily declining sales.
- Bloomberg Business Week is now pointing out IBM's problems.
Why I'm Long Supernus, A Small Specialty Pharma Company
- Small specialty pharmaceutical companies have the potential to grow steadily for years to come.
- One company that has caught the attention of a value investor in the microcap space is Supernus.
- This company has several marketed or FDA-approved products using its technology, and last year received FDA approval for two of them and is growing sales of each.
- The current focus of Supernus is epilepsy, an attractive niche.
- Future growth for Supernus is also limited to CNS, showing this company may have the focus investors prefer.
A Review Of New Resource Bank, A Profitable 'Story Stock' Trading Below Book Value
- New Resource is a San Francisco-based "green" bank.
- It was the first publicly-owned corporation to become a 'B' Corp.
- This very small company's growth has begun to accelerate.
- Investors who are interested in building positions in illiquid microcap stocks might be interested in learning more about this company.
A Physician Compares Gilead's And AbbVie's Hepatitis C Products
- Hepatitis C, which afflicts perhaps 150 million humans, is now highly curable.
- The current leader in bringing drugs to market for this disease is Gilead Sciences.
- AbbVie, the new company that is the pharma division of Abbott Labs, is in second position.
- This article describes the disease and its treatments, and suggests how investors may wish to think about the stocks of Gilead and AbbVie.
Why CVS Caremark May Be Severely Undervalued
- CVS Caremark may have reached a level of stability that it can trade above its traditional valuation.
- The company is firing on multiple cylinders.
- International and specialized operations may allow for steady, rapid growth for years to come.