Gilead Sciences

I first wrote about Gilead (GILD) back in November in the mid $40s.  It recently went over $52 per share.  I continue to own the company and it was just named the 2009 stock by JP Morgan at the beginning of 2009.  Naturally, it went down the next three days.  I guess analysts don’t have the best reputation right now.  With that being said, I still like it.  I spent last week discussing the healthcare industry on my radio show as one of the few places where there was still growth, cheap valuations, and an industry that was recession resistant (I don’t want to say recession proof).  Gilead Sciences (GILD) has a ton of cash, they are growing a lot, and the market weakness in the last few days is giving everyone an opportunity to acquire some shares.  It’s recently pulled back from $52 to around $48.  As you can see from the picture below, the stock has been making higher bottoms since October.  I believe the uptrend is still intact and it will re-test the old highs over the next couple of months.  I put the relative strength index above it.  You can see it has also pulled back recently but it is still in an uptrend.

Gilead Sciences 1 13 09

I also like GILD right here because it has pulled back to the old highs of $48 that it ran into several times in the fall but is holding.  If you are still concerned about owning any stocks, you can place a stop on this one.  I prefer to keep it and hedge it with a short on the overall market.

Disclosure:  I own shares of Gilead Sciences (GILD)


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