Eli Lilly & Co. (LLY)

There's a huge market for the weight-loss drug. Also, LLY has a strong drug pipeline: ulcerative colitis, Alzheimer's, for instance. 

Appreciates what it's done. Trades north of 50x current earnings, expected growth rate is pretty exciting. Ask yourself: is it worth paying up, when peers are trading around 15x? He'd look at AMGN.

It reports Tuesday. It comes down to their weight-loss drug sales. How quickly can they rump in production of it in their factories to meet demand?

Is up 83% in the past year. Their hit weight-loss drug is in such demand that you can't find it in New York City. Buy some tomorrow, then buy more at a 5% downturn.

Excellent business, but would wait for share price weakness before buying. Performance has made shares expensive. Weight loss drugs performing very well. One concern is that weight loss drugs are unproven. 

They make key drugs for obesity and diabetes. Shares rallied strong last year and continue to do so.

High PE. Huge expectations baked into the price. Long-term effects of these weight-loss drugs are not yet proven. Any hiccup or negative news will slam the stock, and that might be your entry point.

He should have deemed this a buy, don't trade stock, but he wasn't sure about their latest drug test results. Turns out that those results were fine. he got that call wrong.

They have the best model among pharma, spending years to develop their drug pipeline, like their weight-loss drug. Their superior research is their secret sauce. They don't have a patent cliff like their peers. They are a growth name without buying other companies.

Novo and Eli Lilly have both run up, but there's still more room to go, given the strong demand for their weight-loss drug. Insurers will probably pay for these drugs, because without them consumers couldn't afford them. Sure, others are developing their own drugs, but it's not easy. Pfizer just announced it's giving up.

The weight loss part is driving the stock and the company has a very good hold on this growth area. Weight loss drugs also have very good other benefits. It is more diversified than NOVO which he owns. In time the insurance companies will have to cover these drugs.

He strongly disagrees with some analysts who say that the new weight-loss drugs won't move the needles of their company stocks. He expects huge demand for these drugs to battle diabetes, which would prevent many other diseases. He sees a lot of runway ahead for LLY and Novo Nordisk.

A winner over the last year. Obesity drugs are going to be everywhere, and sales estimates keep increasing. Valuation's moved very high on momentum. Catalyst for the next decade or longer will be pill form (set for approval in 2024) vs. injection, as well as tweaks to performance. The stock will trade on drug performance and market sentiment.

Difficult to predict success of wright loss drugs. Demand for products growing nonetheless. Difficult to predict success of business in general. Would recommend sector ETF instead. 

Its hit diabetes drug may be the best-selling drug of all time. It just hit all-time highs today.