The Donald is not helping my Gilead Sciences (GILD) holding this morning:
Apparently, the stock market now trades on Donald Trump’s tweets rather than Central Bank actions – not sure if that is a trade up? At some point fundamentals will matter – but not right now.
Unfortunately for me – GILD is the only company to pass the 52-Week Low screen this week:
| Ticker | Price | Fair Value | Margin of Safety | Yield % |
| GILD | $72.01 | $98.00 | $25.99 | 2.5% |
Click on the links to research further.
Morningstar has also lowered their fair value estimate to $98.00 – reflecting lower pricing power and declining sales for their hepatitis C drugs – would think this was already factored into a stock trading at a PE Ratio of 6.73? Should I buy some more? Or pick another Biotech on a down day?
52 Week Low stock picks are based on the following screen:
- Morningstar analysis available.
- Less than 5% above its 52 week low.
- Greater than or equal to Narrow moat.
- Free cash flow/enterprise value greater than 5% (should be above what the 10 Year Treasury Bond is yielding).
- Financial Health Grade >= B.
- Forward P/E <= 20.
- Stock Industry not = Asset Management
- Dividend Yield % >= 3
- For candidates that have passed all the filters, review the individual stocks Return on Invested Capital (ROIC) for the previous 10 years to select the best long term candidates.
Extra: Good post about diversification – if you don’t always have something in your portfolio you hate – you are probably doing it wrong:
- A Wealth of Common Sense – Diversification Is No Fun
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