I wanted to buy GILD at 100 or less as shown on my stocks to watch page and ended up getting 200 shares at $100.07. Close enough.
Biotech has been hit hard lately and one of the reasons is that Hillary Clinton came out last week and attacked the industry for pricing drugs too high. You can read more about it here. This has understandably freaked out investors and a broad range of biotech stocks have been selling off all week. This is not the first time politicians have voiced their disapproval over the high price of drugs and it is something to always keep in mind when investing in biotech. That much I know.
Other than that though, I would be lying to you if I pretended to understand the biotech industry and how it works. Its just so complicated that most of what I read goes in one ear and out the other. For that reason I will direct you to the Seeking Alpha page on Gilead that lists all the articles written on the company for much of this year by people who are much more knowledgeable than I am. Who to trust, who to believe, whether any of them really know what they are talking about, etc. is left up to you to figure out. I do know that from what I have read, the author by the name of DoctoRx is really thorough in his analysis and I believe he knows what he is talking about.
Gilead, by all accounts is a cheap stock that pays a 1.6% dividend and is in the midst of a big stock buy-back program. Much of its income/profit comes from its Hepatitis C drug Sovaldi which is priced very high at about $1000 per pill and you need to take one every day for 12 weeks. That works out to about $84,000 per treatment but the good news is that there are few side effects and over a 90% chance of being cured. Hep C is a very serious disease that can kill you so being cured is very important.
To read more about Gilead’s business and its stock I direct you to this article. Right now I think any threats from Hillary Clinton are mostly hot air as the election is more than a year away and she may not even get elected. So, I have chosen this time to buy into GILD and hope that the pre election rhetoric will die down and the stock will go up from here.