Celgene Corp (CELG)

They were working on some drug trials which didn't work as expected. Acqusitions didnt work out either The balance sheet is weaker than before. Some of their drugs will soon lose their patent.

Stock price has pushed up above the 200-day moving average. Longer term, this is an important space to be in. Good pipeline. Hold onto it at this point. Valuation is cheap. Trading at 9x earnings, expected 20% growth rate.

(A Top Pick September 19, 2017. Down 37%). About 70% of the stocks he buys turn into gains. Celgene was one of the losses. Generally, the goal is to cut losses quickly. However, Celgene’s earnings have been rising, not falling. The difference is that the market has lost confidence in the company and dropped the valuation from a premium level to an extreme discount. The company has had some missteps, failed drug trials, that pare down its long term growth. Looking at Celgene at today’s price, he is keeping it because it offers good value at this price.

Nice chart. Really nice base in May/June around $79. If it can stay above $83, it’s looking pretty good. Potential to consolidate around $100, as an end of year target. If it drops another $8, start reducing. Take a small position only.

The biotech sector is performing well. He would prefer to own the XBI-N ETF to get a basket and diversify risk.

It is turning around. It got hammered and is showing some potential. It looks like it is breaking the downtrend. He is keeping a sharp eye on it. He is optimistic.

Own widely. They had a number of missteps. They reduced their guidance. Great valuation. Some competitive threads coming in 2021-22. He would be cautious. (Analysts’ price target is $113.68)

He has started watching this bio-tech company as their earnings have been improving. The technical chart looks bearish to him now. He will watch them. (Analysts’ price target is $114)

This sector is fragmented and under valued. He likes it but has some short term issues that have hurt the stock. This is a negative momentum stock. Expects this to be higher in a year or 2. His favourite is Gilead in the sector.

He's long owned this. They has a nasty surprise in 2017 when a drug failed to get approval, plus other issues. Currently it's selling at 9x earnings. Firmly believe their new products--with big upside--will carry this company higher. (Analysts' price target: $111.83)

(A Top Pick May 28/17, Down 32%) It is considered best of class but stumbled and there is a negative sentiment to health care stocks. It is growing double digits but trading at a single digit multiple so he is just holding it for now.

Not cheap, based on its historic valuation. Fundamentally, it's a good business, but its chart is unhealthy. Healthcare should be in any portfolio and this is a quality company. But Celgene ranks near the bottom of his medical/health stocks, 45 out of 49.

Sold it a while ago. Looks cheap from a valuation standpoint trading at 9 times forward earning with a 19% growth rate. Investors are concerned about their cancer drugs patents expiring in a couple of years. Dark cloud surrounding the company.

They completed a $5 billion buyback recently. They put up a beat on recent earnings, but there were concerns about future earnings. He does not like the space as there is a wall of sellers to overcome and bio-tech is running out of technical momentum. They have great forecasted cash flow, but watch out if they miss their guidance.

We have some erosion here. You have to live with the overreaction. Around the $75 - $85 range there is probably a really good opportunity.