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Compiling comments that experts make about stocks while on public TV.

2017-09-12

Opinion for Gilead Sciences Inc. (GILD-Q)

Signal Price Bias Subject Owned
COMMENT $84.510 BEARISH on CANADIAN MARKET US EQUITIES Unknown

About 50% of its franchises are based in hepatitis C. You really have to be careful, because this franchise is slowing. They have 2 prospective years of negative earnings growth, which is a huge headwind. Value this on its long-term cash flows. There are 2 things to consider. 1.) How sustainable are they. If that continues, then you have a leg to stand on. 2.) If you have falling rates, that is good for valuation. The problem is, we are probably going to have flat to rising rates, and Pharma M&A is a bit of a dice roll. He doesn’t buy into the story, and would prefer the Spdr S&P Biotech ETF (XBI-N). You could be a little more conservative using the iShares D J Medical Devices ETF (IHI-N).

Cameron Hurst
Chief Investment Officer, Equium Capital Management

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