Eli Lilly & Co. (LLY)

It was upgraded today. Well, that's too late! LLY already made a huge move after its new revolutionary drug that treats diabetes. It comes down to timing. Don't buy when everyone is saying buy buy buy.

Obesity is a global problem. Once a drug is approved for one use, a physician can prescribe it for another. Lilly has approval for diabetes, and is on the cusp of approval for weight loss. The weight loss is dramatic, reduces diabetic risk. About to become a huge piece of business. Yield is 0.98%.

Has done very well the past 5 years. 
Demand for diabetes and weight loss drugs very strong.
Largest healthcare company in the world.
Valuation very high - would wait for shares to fall before buying.
Likes other companies in the space at lower price. 

Likes it, but took profits today. Don't be greedy.

It is a very diversified pharmaceutical business and is executing well. It is focused on an Alzheimer drug that still needs to be validated but looks promising. A real driver is Monjaro for Diabetes, hopefully ready by mid 2024. It also covers the obesity issue with a 22% weight loss production component. This is a massive amount of change in weight. It is phenomenal what they are doing. The stock has already climbed quickly so the price reflects built in high growth. Its drugs are needed for future population trends.

Alzheimer's drug looks interesting, concerns about side effects. Good cancer drugs. Interesting diabetes and weight loss drug. 45x forward earnings, 20%+ growth rate. Pricey, be cautious. RSI at 79% is overbought. He owns MRK. 

Remarkable momentum, trading like a biotech. Great news today, but the PE is a little rich at 60x.

Healthcare remains recession-resistant (not recession-proof) this year. They have pricing power. LLY didn't have a great quarter, but they raised guidance.

At one point this year was the worse-performing stock. Their weight-loss drug is energizing shareholders, but the government needs to approve it. He urged buying during last month's dip. Eli Lilly also has a promising Alzheimer's drug in the pipeline, so it's no one-trick pony. Shares have rebounded to 2023 highs.

Health has been in a secular bear market for a decade and likely will remain there for another decade. However, LLY shares are toppy now around $360. You can't go wrong with this name or sector.

Has done well. Their diabetes drug is effective for weight loss, which is pending approval, but would open a new market. She expects approval. Stock price reflects this approval though. Weight loss is a lucrative market given obesity levels around the world. The PE is too high for her, but may buy on a pullback.

The whole drug industry has been under pressure for the past 30 years and is having more and more trouble coming up with new drugs. R&D costs are increasing so he doesn't like the pharmaceutical industry in general. In response to a question regarding the currency component he doesn't feel it is an issue.

It has outperformed the sector. The technicals are OK but but it is not in a great space. He owns some but would not buy more at this time.