by Sam Collins | October 9, 2013 1:01 am
Gilead Sciences (GILD) — This has been a favorite biotech stock of mine since Nov. 19 near $37.50. On Aug. 29, at just over $60, I reiterated my positive opinion of the stock, citing an increase in earnings estimates by S&P to $1.86 in 2013 and $2.78 in 2014.
At that time, I said, “New hepatitis C drugs and stabilization in market share for their leading HIV drug are expected to enhance future earnings; thus GILD should be high on the list of biotech stocks in investors’ portfolios.”
On Sept. 19, I pointed out that, “Technically the stock is still in a clearly defined bull channel, but it has enhanced its potential by breaking through resistance at $64 from a ‘V’ formation. My trading target had been $67, but Wednesday’s bullish breakout boosted my target to $72.”
However, market conditions have changed due to the failure of political parties to reach an agreement on the budget and debt ceiling. This has reversed the near-term trends of many stocks, providing investors with an opportunity to buy them at much lower prices.
GILD is among the stocks I would like to take a position in at a bargain price. The buy under price is between the August low of $56 and its 200-day moving average at $55.
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