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I hold a large position in GILD, I don't consider it speculative. They are very profitable, growing, and have been returning capital to shareholders through buybacks. Dividends are just another form of capital allocation.
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Speculative in the sense that it didn't pay dividends. When I reach retirement age in an ever-shortening time frame, all my holdings have to pay a dividend. Buybacks don't pay any of my bills. Now that they've instituted the dividend, the picture changes. Let's see if they will increase it regularly in the years ahead.
GILD's future looks pretty bright here, much like Amgen about 15 years ago, with a pretty interesting pipeline and solid products already on the market.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
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What do you all make of the substantial drop today on news of discounting their Hep C products?
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GILD crushed earnings
Gilead Sciences (NASDAQ:GILD): Q1 EPS of $2.94 beats by $0.62.
Revenue of $7.6B (+52.0% Y/Y) beats by $680M.
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rapid, thanks for those outtakes from the conference call. I'm not going to get to it (and some others) for a while since I'm in a time crunch right now.
The earnings stats are certainly a stunner. Can't wait to dig into that 10-Q.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
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BofA/Merrill still ranks it Underperform. They see the current cash haul as a temporary, and earnings falling over the next few years.
GILD still remains one of my largest positions.