Stocks in Jim Jubak’s Portfolios:
Allergan (AGN), which I added to my Jubak’s Picks portfolio on July 30, 2015 on the strength of its Botox franchise, acquired two companies on September 20. Neither is in the Botox or cosmetic drugs space. Both, in fact, are companies developing drugs to address NASH–nonalcoholic steatohepatitis, one of a group of conditions called nonalcoholic fatty liver disease. Patients with NASH suffer inflammation and damage to the liver.read more
Why would Pioneeer be interested in adding production during an oil glut? Because the Spraberry/Wolfcamp shale geology is so productive, among the most productive of U.S. oil shale geologies, that Pioneer can make a very substantial profit with oil at $46 a barrel (as currently) or even lower. The company calculates break-even costs for this shale geology at $39 a barrel with current technologyread more
Bristol-Myers gambled and lost on a quick expansion of cancer drug Opdivo’s market–but there’s still good upside in the shares
Let’s be clear about what happened to Bristol-Myers Squibb (BMY) and its key immuno-oncology drug Opdivo on Friday, August 8, when the company announced that Opdivo had failed to demonstrate its efficacy in a trial for treating lung cancer. Opdivo didn’t fail as a drug. A Bristol-Myers go-for-broke marketing strategy suffered a huge blow. In effect the company gambled big that this trial would be able to massively expand Opdivo’s market ahead of tough competition and the gamble went bust.
You can see the go for broke gamble in the design of the drug trial.
Going into the third quarter earnings season, Wall Street analysts had pegged the information technology sector of the Standard & Poor’s 500 as the only sector where estimates for the third quarter had climbed since June 30. That optimism on the sector has been backed up by reports from some smart phone sellers that sales of Apple’s (AAPL) new iPhone 7 and 7+ were running more strongly than expected. Add to that Intel’s improved guidance for the quarter and it looks like overweighting technology might be a good idea for the earnings reporting season that starts in October.read more
Abbott Labs has a growth problem. Analysts forecast that revenue will growth by just 3% in 2016. Not exactly what you look for in a company whose stock trades at a trailing-twelve-month price to earnings ratio of 27.5. Actually the drug, device, and nutritionals company has several growth problems. For example, slow growth in the developing world has cut into growth in Abbott’s pediatrics and nutritional business.But maybe the biggest growth problem is in the company’s diagnostics businessread more
In new guidance today Intel raised its outlook for third quarter revenue to $15.6 billion, $300 million above previous guidance. The midpoint forecast for gross margin climbed to 63% versus the earlier midpoint forecast of 62%. The company is pointing to inventory replenishment in the supply chain and signs of improved demand for PCs.read more