Saturday, April 22, 2017

Is it time to buy this stock, that's only crime is that their product works to well? The answer is YES! It is time for the patient investor to buy shares of Gilead Sciences (GILD).

Dow Jones Industrial Average 20,547.76 (Down) Week ending 04-21-2017
S & P 500 Average - 2348.69 (down)

Guilty as charged. Gilead Sciences (Symbol GILD, $65.95) cured the Hepatitis C virus with there regiment of medications,  Sovaldi and Harvoni. Because of this,  there is not a continuing use of the drug and therefore no repeat business with that patient. That's GREAT, but not so good for the earnings report. 

However, this lowering of earnings has gone on for two years and into next year. This downside earnings number next year is looking like $7.62 per share in earnings with a forward PE of 8.76 in stock market that trades at 17-18 times earnings. Normally a stock with those earnings would trade for $110.00 to $130.00 per share. GILD reports earnings on May 2nd, 2017.

In the last three months insiders by 30-18 have been on the buy side of this stock. The company operates on a Return on Equity of 83.5%. It pays a 3.15% dividend why you wait. Unless you are retiring in the next 2 years, it is time to buy this stock right here. I have already purchased it myself personally for my IRA account. What I am looking at is the eventual slowing of the earnings decline. The company also trades at a Price to Free Cash Flow of 6.4.

and, this is not a company standing still.
They have a very robust pipeline, , and plenty of cash if they want to go out and purchase another company. What if they got together with like a Bristol Myers Squibb, (Symbol BMY).  

It is time to look at the glass half filled, not half empty! This company has many options to be successful.

So let spring time arrive here in April , and pick up a nice bargain for your long term retirement portfolio. Buy GILD here at the market.



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