Avid Bioservices Inc (CDMO)

[sulaco]

I agree; GILD has a flat trailing and forward PE

this year and they're pissed. CEO Martin (compensation $43 million last year) is getting seriously rewarded for the 500% increase in Gilead's value since 2011...BUT this is a "what-have-you-done-for-me-lately" cut-throat industry.

GILD's board has a stupendous track record. Their acquisitions of Triangle (think Viread) and Pharmhasset (think Sovaldi/Harvoni) have basically given them a license to print money. But I don't see them kicking back. Not in this industry.

They're snarling for a cornerstone molecule for cancer. They have $24.7B cash sitting around doing nothing. Heck, they're not even interested in buying back their own stock. Which means they're on the warpath. Their stock is cheap right now (which based on the stupidly low PEs is a great bargain even at $100/share).

Expect GILD to jump sharply in value in the next 3 years. If they get their cancer cornerstone molecule, and that molecule is Bavi, we'll all pass out.

Haha,

Regards,

Joe