03-12-2021, 04:13 PM
(02-25-2021, 10:25 AM)fenders53 Wrote:(02-25-2021, 10:00 AM)divmenow Wrote: Bought some LDOS. Between the earnings miss and short report I haven’t seen it this low in a while. So I said why not lol. You in on this one too Fenders ?I haven't researched it. Hadn't heard of it until you and Otter were discussing it last week. I am trying to not add too many more new names. We'll see how long that lasts.
What I need is for tech to get hammered for real again, but this market is resilient.
Very small trades this morning. Added a few shares to DG-ARKF Sold a few SLV puts.
(03-12-2021, 04:02 PM)crimsonghost747 Wrote:(03-12-2021, 01:19 PM)ken-do-nim Wrote:(03-12-2021, 01:17 PM)crimsonghost747 Wrote: Initiated a position in NVO.
Looks like an awesome company. All the things we love to see in our steady DGI companies with quite a bit of long-term upside. (just my view)
It's quite expensive though, I wouldn't want to start a large position at these levels but it's good to nibble a bit here and there.
I'm confused. NVO is at $70.74. 5 years ago it was at $55.79; how do you deem it expensive?
Charts are funny that way. Let me start off by saying that I don't have a great understanding of the company's past.
But indeed, up 25% in the past 5 years, seems pretty normal right?
But if you pull up the 2 year chart, you'll see it's +40% in the past 2 years. That's a pretty big jump.
I personally think a P/E of close to 30 is a lot for a mature pharma company that relies on a very limited amount of drugs. And covid didn't really affect their 2020 earnings that much, so a sudden decrease in EPS doesn't explain the high P/E either. The company is good, it has it's risk. Historically all the juicy numbers I look at (revenue, eps, cash flows, debt) are trending in the right direction. But I just haven't seen the kind of movement in those numbers that I would want to see if I am paying 30x earnings.
Thanks for the explanation! I do see the 2 year increase. Kind of similar to another biotech company I'm watching, XLRN. Check out the last 2 years spike on that one!!! I have no idea why.