Dividend Growth Investing, Retirement Income, Stock Market Investing, Uncategorized

Why I Added GILD

This just came in over the transom from what I consider to be a trusted and reliable source…

“Gilead Sciences, Inc. (GILD) — remains my favorite biotechnology stock.

Earlier this year, the company initiated a quarterly dividend of $0.43 per share, as well as a five-year, $15 billion share buyback program.

S&P Capital IQ lauds Gilead’s superior management and research, and its progress in decreasing its reliance on its HIV franchise. Thanks primarily to the success of Gilead’s hepatitis C drugs, Sovaldi and Harvoni, its analysts expect revenue growth of 17.3% in 2015, while earnings are expected to increase nearly 40% to $10.20 per share. They project gross margins of 90% and operating margins of 71.2% for the year.

Capital IQ rates GILD stock a “strong buy.” Its 12-month price target of $143 is 14 times the 2015 earnings estimate, which is conservative in the biotech sector.

After a run from under $65 in April 2014 to just under $117 in October, GILD stock consolidated in a rough saucer formation. It broke from that consolidation last week. A new golden cross was triggered after steady accumulation appears to have overcome profit-taking.

On Thursday, GILD stock broke from a huge double-top with a trading objective of $125 and a long-term objective of $150. Both traders and investors should buy shares at the market for short- and long-term gains, as well as the newly established dividend.” bold emphasis mine

By that means which I employ, I long ago identified Gilead Sciences as one incredibly high-quality firm, and a favorite darling of traders. I wouldn’t get involved because I am solely committed to growing our portfolio dividend income. On the day that I learned that GILD had become a safe-dividend payer, I also came to believe that they would also become, in another year’s time, a safe-dividend grower, of the kind that I love. So, on May 21st, I acquired a token position to get started, and wrote of that here. I highlighted the closing line of the above analysis, as it confirmed my own belief concerning Gilead. I think I just might buy a little bit more today, since I may not ever get to acquire some at this price again, unless it should pull back to test the resistance just broken, to establish it as true support. At which time, I may very well round out my position to the level of that amount I have placed with the other 18 concentrated issues in our portfolio. I’ll let it be known, if I do.

Here’s to your successful investing!
Harold F Crowell

Advertisements
Standard

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s