Monday, February 1, 2016


After reading many comments on an article on GILD, I have to conclude:

* Thanks Byran the author for this article. We examine the two sides of a story and decide it for ourselves.

* To defend Byran, Jeffrey Loo has a worse record than Byran based on

* The side effect of the competing drug may drive some patients away if the cost is not a big deal (i.e. insurance and Medicare payment).

* There is enough market (current patients and growing patients) for both companies on this cure. It would be very profitable for both companies on this drug for a long while. Do not dump the goose that lays the golden eggs at least not now.

* Fundamentally Gild is real sound except for high debt according to the metrics in

* The controversy whether the drug company should price the life-saving drugs so every patient can afford it is just controversial. I believe both arguments should be compromised. If we price it as a give-away, there will be no research on new drugs.

Next day comment on GILD.

* After reading a negative SA article, I bought more shares yesterday with a 15% price reduction from last month.

* Buy back would raise earnings per share as the number of outstanding shares is reduced and earnings is the same. It is using the company's cash, so fundamentally there is no change.

* The management was blamed for not using its cash. Now, it proves to be smart to wait while the bio tech stocks crashed.

* GILD should pick up some good candidates to acquire. These small companies do not have the resources to market a drug but have promising drugs.

* GILD should have great profit and cash flow until this drug expires.

* The government employee working 7/8 of his time with the government sold this drug to GILD for 400 millions. What a country!


For more of my reasoning, check out the book described next. It has 800 pages (6*9) for $9.99. It could be the best $10 you ever spend.

The above is an abstract from my book "Complete the Art of Investing" which is available from Amazon.

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