11-05-2014, 02:24 PM
Own GILD in my investment club and bought it recently for my son's ESA plan, both at around a $92.50 basis.
The stock has tripled since the beginning of 2013, so its hardly a laggard by any means. I suppose there is just enough uncertainty to discount future earnings projections, and enough doubt about the long term prospects to pay a high multiple, but I think as the quarters go on and they continue to produce great numbers, the share price will increase accordingly.
Keep in mind the huge cash flows this company will be generating. I expect share repurchases to be accelerated in 2015 as long as it continues to trade at a reasonably cheap multiple, and also wouldn't be surprised to see a dividend instituted as well.
The stock has tripled since the beginning of 2013, so its hardly a laggard by any means. I suppose there is just enough uncertainty to discount future earnings projections, and enough doubt about the long term prospects to pay a high multiple, but I think as the quarters go on and they continue to produce great numbers, the share price will increase accordingly.
Keep in mind the huge cash flows this company will be generating. I expect share repurchases to be accelerated in 2015 as long as it continues to trade at a reasonably cheap multiple, and also wouldn't be surprised to see a dividend instituted as well.