Gilead Sciences Bucking The Trend

I’m always looking for companies where the fundamentals and charts don’t match the market.  The market’s fundamentals are getting worse, not better.  And the charts?  Well, you could argue positively and negatively.

One company I own and continue to believe in is Gilead Sciences, Inc. (GILD).  The stock is up over $1 today while the market is down about 100 points on the Dow.  It’s been up all day and I think it can re-test its highs from the summer of $57.63.  This biotech company discovers, develops, and commercializes therapeutics to advance the care of patients suffering from life-threatening diseases.  Some of their products include antivirals, antifungals, & antibacterials.  These aren’t discretionary items last time I checked.  This company has 40% sales growth, over 60% return on equity and alot of cash. 

Its 21-day moving average just crossed its 50-day moving average and the 200-day moving average is around $50 per share.  If blows through that, you could see that old high re-tested.  The more this market stabilizes and moves sideways, it gives Gilead a chance to do great things.

This isn’t a recommendation to buy this stock.  It’s just a place to start your research.


2 Responses to “Gilead Sciences Bucking The Trend”

  1. 1 TIM November 15, 2008 at 5:58 am

    funny you say that, I like to look at a 1 year weekly chart and it has been making higher lows. What chart do you look at? Do you look at weekly charts or daiy’s or 30min?

  2. 2 keggerss November 15, 2008 at 8:44 am

    I look at intraday, daily, & weekly. I’m not sure what you’re disagreeing with. Gilead has been making higher lows. I agree with you. I think the chart looks great. I was basically saying that if the market as a whole starts to stabilize and move sideways, it gives companies like GILD a chance to really go up strongly. But, when markets go down 10% in a week, it’s hard for any company to buck the trend.

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