Gilead Sciences Inc. (GILD)

Biotech has 2 periods of seasonal strength. One is predominately during the summer from August through until October, but there is also a very minor push during the months of April and May which we are seeing now. Had a huge selloff during its seasonal weakness of February to April and had become deeply oversold. We are now into a minor period of seasonal strength, but he would look into buying this in August.

A Top Pick last time. Has been beaten up. Has a blockbuster drug where earnings will explode. 18 times earnings, 25% earnings growth.

One of the world’s largest bio pharmaceutical companies. Primary area is in HIV AIDS, but they just had their hepatitis C drug approved in December. This will mean tons of revenue in the billions and earnings growth. Expects a 30% growth rate. Trading at 22X earnings, which is a pretty compelling valuation.

One of the larger biotech companies. Biotech has been outperforming pharma. You can also look at BBH for exposure to the sector. Just pulled back into the moving averages.

Likes their technology and products. When he models out the prospects for their new HEP C drug the numbers don’t work. Thinks the new product is already built in.

Biotech group has been performing extremely well. There is growth and there is an expectation that they will be bought by a traditional drug company. You are buying something for growth here. Prefers to own the group, such as XBI-N, an ETF.

Anybody who bought this stock over the past number of years has made a profit because this one is near its historical highs. Company doesn’t interest him because it has done too well. Did a takeover which muddied the balance sheet so it is pretty ugly. Insiders have been selling an awful lot of the company.