Amgen Inc. (AMGN)

If you look at their operating economics, they are very much like a large Pharmaceutical company. Relatively slow moving. Their rate of innovation and patent expiration on all products kind of match, so there is not a lot of upside. The growth that has occurred, much of it on a trailing basis, has come from rising prices on their rheumatoid arthritis drug, but will no longer be able to do that. His belief is that prices are coming down.

Great company. A cheap stock, trading at 11X earnings. Good dividend yield of about 2.75 %. Thinks they are going to do very well going into 2017. Have some great products coming out. They have a pristine balance sheet.

(Market Call Minute.) Many people thought the Biotech sector would behave better if Trump got elected. It has had a lift, but it remains to be seen if it can be followed through.

He sold all his biotech stocks in late August. He likes them from a seasonal perspective. He likes the whole sector long term. It is in a secular bull market. Biotechs are very volatile.

A great company and one of the stronger performers in its category. 2.5% dividend yield. Growing earnings at about 10%. They have very strong franchises. You could also buy a basket of the big biotech companies through the Spdr S&P Biotech (XBI-N) ETF. The only difficulty is that to move the needle on a $125 billion company is that they have to make a big acquisition, and there are not so many out there right now.

(Market Call Minute.) He likes the biotech and the healthcare space, but there is some rhetoric coming out of the US in terms of politics. Keep an eye on that before buying a name like this.

He likes healthcare. His model price is $163.61, an upside of 9% from the current price of $152. A year from now he feels it is worth $179. 2.7% dividend yield.

Amgen (AMGN-Q), Celgene (CELG-Q) or Biogen (BIIB-Q)? These are 3 great companies. His preference would be this one, which is the leader in the space and the dominant player.

He owns 3 biotech companies in his portfolio, and he wants to own best in breed. In this latest correction in the biotech space, if you are looking to have exposure but big deep pipelines, good balance sheet, consistency and the ability to abstract revenue out of the drugs, this would be the one. Dividend yield of 2.66%.

Going into a presidential cycle, healthcare is the easiest target in the world. Drug prices in the US, unlike Canada, are incredibly high. Every major drug company is there, because they can charge whatever they like for drugs. This is why a lot of these types of stocks have gone down. He likes this one a lot, and has bought more at these levels. They have a great pipeline, it is not expensive and pays a great dividend.

The largest biotech company globally. It has 14 drugs that are greater than $400 million in revenue. Has about $32 billion in cash against $25 billion in debt. Some of the concerns are around their pipeline and some of the drugs that will come off patent. It has been giving a 25% bump in dividends every year. Balance sheet and growth are excellent, and you are getting great dividend increases every year.

It has an elevated horizontal narrow range after a long uptrend. It keeps retesting the highs. It means to him that the buyers were not hesitant, that they will pay top prices. This is bullish and it should break through.

Right now the drugs are a fashion, and that is one thing that makes them interesting. Thinks this market is in a big rotational spin, and right now they are under attack because politicians are trying to get elected. If you are patient, he thinks this will be fine. It is well-run and has some good products. Expect there will be a lot more M&A activity in the drug space again.

(A Top Pick April 16/15. Down 8.57%.) A large biotech company. Pays a dividend has some great products. He continues to like it. They execute very well. To him it is really a pharmaceutical company. If you Buy at this time, you will do very well over the next couple of years. Wait until November to see how the political situation goes in the US.

A really solid biotech company. Well diversified with a number of products. (See Past Top Picks.)