Gilead Sciences
GILD spent the first three weeks of January drifting lower until catching an updraft after Trump’s inauguration. That is somewhat ironic, since it is Trump who was viewed as the greatest threat to drug companies such as Gilead. Compounding matters for the healthcare sector is Trump’s disjointed approach to repealing the ACA, which is currently in limbo without a clear plan for replacement.
Against that backdrop, last week Trump met with the CEOs of several major pharmaceutical companies (not including Gilead), and afterwards indicated he may be softening his stance on what he had previously characterized as predatory business practices. Trump suggested he would simplify the process for obtaining FDA approval, and wanted to create a level playing field to eliminate price disparity with foreign-made drugs.
All that is good news for GILD, but even better would be an earnings report on February 7 that catches everyone by surprise. There is lots of room for upgrades if the Wall Street firms that follow GILD like what they hear on Tuesday evening; 11 of them have it rated as a ‘hold’, another 11 rate it as a ‘buy’ while only 6 rank it as a ’strong buy’.
Note: GILD is releasing its quarterly earnings report this evening, so I will add Stock Talk commentary beneath this article after the stock market opens on February 8.
Stock Talk
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just reporting what I am reading GILD shares down about 7% in premarket trading.
Dramatic License
From what I saw they got hammered in aftermarket, USNA too.
Jim Pearce
Yep, I will be issuing an alert later this morning with updates on all three companies that issued quarterly reports yesterday.
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Janis Bell
Looks like my stop loss got triggered in the drop, went down .88 cents below the recommended stop which makes for a loss of 7.49 a share. If I’d put a stop limit on it of 67.50, I guess I’d still be holding it down at 66.02 though, so time to count my blessings I guess. How do you others handle this?
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Jim Pearce
From today’s alert covering CAH, GILD and USNA: “The news was considerably worse for Gilead Sciences (GILD), which reduced guidance for sales of its flagship portfolio of Hep-C drugs. As a result, GILD opened this morning at $67.14, almost 10% below yesterday’s close. If GILD closes below its stop price of $68 today then I will issue a sell alert on it tomorrow. If it does not, then we will watch it closely to see if it can mount a recovery before the expiration of its target holding period on May 15.”
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Gompps
My stop loss was triggered, selling at $67.0746, for a loss of $8.6774/share.
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Larry Johnson
Stopped out at 67.05.
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