Bristol Myers Squibb (BMY-N)

BMY paid nearly $13 billion to buy the company that was developing Cobenfy. This could could help BMY get the patent cliffs of their other drugs in a few years.

Credit them for being a company which led to the schizophrenia drug, which the FDA just approved. BMY has been unloved, selling before 8x PE at a 4% dividend. Puzzling, but shares will certainly rise. He sold it last year and may re-enter it.

Pays over a 5% dividend. Was the top pharma, but slipped. Their purchase of Celgene disappointed while revenue growth has been negative. Earnings shrunk last year. But he likes the new CEO and him buying 3 companies in onocology and neuroscience, both growth areas. Also, there have been cost cuts. Be patient though. They reported a clean top and bottom line beat last week and issued very strong guidance. Trades at a cheap 7x 2025 PE.

It just raised its forecast, released better numbers than expected and revealed a slew of new, promising drugs. Shares have jumped. The new CEO knocked out of the park the latest numbers, instead of missing numbers as so often before.

They just reported a Q2 beat. It hasn't performed well, but is finally rebounding a little. Their product pipeline will be good for the next few years.

His whole mantra is to buy good companies that are getting better. He wants to have a strong fundamental view, and he wants the market to show that it's agreeing with him -- he doesn't want to be alone in the woods in a good market, not participating.

Problem is a fair bit of debt, low growth. In a market like this, you only need 20 companies to get a broadly diversified portfolio. Don't need to take on the risk of this one. Avoid.

It will need a lot of time to turn around. It hit bottom when it touched a 5.75% dividend yield. You won't see good news here until 2029 or 2030.

Dow 7% in May. Lots of struggle in the healthcare space. Will sell.

The market lacks patience for them to get into AI, though he disagrees and the dividend is good.

A lot of their big drugs are coming off patent, and they will need 5 years to turn around. Meanwhile, collect the 5% dividend as you wait. Be patient. He prefers Eli Lilly.

Down 23% in the past 6 months. Pays a 5% dividend. Be patient and give the current CEO a chance to turn things around.

Big on immune oncology and cardio. Technically doesn't look great, but eventually "the train will come along and collect the mail bag". Makes a ton of $$ in NA. Wide moat. Concerns about pipeline, but he thinks it's pretty good. Limited downside. Yield is 4.9%.

Good pricing power. Because products are so specialized, FDA puts them on sort of a fast track.

In the past quarter, They recently bought 3 companies, including Mirati, a small oncology company, and Karuna who may develop a wonder drug to treat schizophrenia. BMY needs to buy companies, because their top 3 drugs face steep patent cliffs, like a blood-clot drug, accounting for over 61% of 2023 (Jan-Sept)'s sales.