It’s time again for one of our popular stock analytics. Today we take a closer look at Gilead Sciences
The California-based pharmaceutical and biotechnology company offers a very attractive mix of Corona’s special economy, a bit of takeover fantasy and a moderate evaluation. The drug Remdesivir, which is approved for Corona treatment, is expected to generate sales of almost two billion dollars this year, which according to Bloomberg’s 2021 estimate should increase by another 20 percent. The 2021 KGV of eleven is among the ten lowest in the entire Nasdaq 100. No wonder there is speculation that AstraZeneca wants to take over Gilead, given that both groups are complementary in their focus areas. If this is not enough as a reason to buy, the share traded around 40 percent below the record high looks at the nice lower reversal, which can be seen in the chart picture along with the medium-term upward trend.
Technical view:
Market has formed a triangle formation since 2014 (after a strong up rally) and broke out of it at the beginning of March. The price is atm within correction movement which is expected to end at the drawn buy area at around 70 $. We´ve set our buy orders at this point.
Feel free to leave a comment or to share your ideas in the comments section Please hit the like button if you share or like this idea. Thanks for your support !
I think GILD is in buy zone now.... what is your opinion?
DK_Investment
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@panduv, long squeeze down to 70 $ area is still possible. If the market next week has formed a bottom in the 72$ area I would open a part position but not yet fully enter the market.
panduv
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@DK_Investment_Consulting, Thank You.
marcellusmotton
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I'm betting 4k with in the money calls. lunch is on me if we hit
BoSukas
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Interesting set up, could you have a look at my chart on Stradel Rail?
DK_Investment
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@BoSukas, interesting company but I believe the demand is still very low. A good thing is the change to electrical trains in cooperation with Vipco company. From a chart technical view it looks still bearish. Maybe it will bottom out at 36 CHF as you have drawn in the chart but you need to watch this for about 3-4 weeks. If price doesnt break this support its a good mid to long term buy !
Indicators as RSI and MACD showing possible incoming trend reversal but not within 5 days ;)