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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (57787)	8/17/2016 6:46:36 PM
From: Micah Lance	Read Replies (2) \| Respond to of 78742

Ok so how about Gilead (GILD)? High ROE & ROIC for the past 10 years, wide moat (based on morningstar), pretty large pipeline of their own drugs as they have spent $4billion in the TTM in R&D, did a quick calc and EV/FCF came out to about 7.1, gurufocus DCF gives it a fair value of $121.46 ($124.95 if you include tangible book value) so according to that it's about 35% undervalued. The company has $8.75 billion in cash. They said in their latest earnings call that they are ending their share buyback program and will start looking at potential acquisitions to help grow their revenue. They have 5+ drugs in phase 3 trials that will assist in expanding revenues. It seems like they have a strong position based on their current drugs in market, have significant capacity to maintain their position at the very least, and have the cash position and cash generating abilities to bring more drugs to market to grow from their current position.

To: Paul Senior who wrote (57787)	8/25/2016 11:41:38 AM
From: gcrispin	Read Replies (1) \| Respond to of 78742

I added to my AGN position this morning. I consider it a GARP stock. Below is a portion of the latest Morningstar analysis. Given its expected share repurchases, we see a relatively straightforward path for Allergan to achieve $20 in adjusted earnings per share by 2018. With over $20 billion in cash remaining following recent debt prepayment and anticipated share repurchases under its $10 billion authorization, we anticipate management will continue to make prudent investments in its core therapeutic segments, particularly in its widest moat areas of aesthetics and ophthalmology.