Market 2017-10-19 (ADBE, GILD, UAL and more)
WOW, Dow Jones and S&P 500 manage to finish green in this 30th anniversary of BLACK MONDAY (on which day 1987, S&P500 down 22.6%).
ADBE jumped 12% to new high after the company ups EPS estimates for FY18 from $5.15 to $5.50 and FY19 from $6.29 to $6.63. 48 P/E is justified by high revenue growth rate (more than 20% from 2-years ago) and healthy margin. It is in my watch-list.
Gild (+2%): New cancer drug Yescarta for lymphoma (developed by Kite, bought in August $11.9B) got approved by FDA yesterday. The list price for Yescarta, which is to be administered just once to each patient, would be $373k. The price is well below that of the first drug in this new class - Novartis $475k Kymriah (approved in August). Spokeswoman Amy Flood said: "We are in ongoing and active discussions with payers, and we have communicated our openness to considering different solutions that improve patient access." If it cures the patient, it definitely saves insurers money in long run. Gilead said about 7,500 lymphoma patients each year is US would be eligible for CAR-T therapy, which means 2~3B market in US. Jefferies analyst Michael Yee projects up to $250M in 2018. The American Cancer Society estimates that 72k people will be diagnosed this year and 20k will die. This type of cancer accounts for about 4% of all cancers in US. If GILD can deliver good Q4 earning, $100 will be the new floor.
UAL (-12%) has its bloody day after ER. The ER turned out to be fine. However, the before-tax margin disappointed investors. I sold all my shares by 10/10, when UAL reached above $68. I called to be cautious about their ER in my post on 10/10. I believe there are profit-taking and day-tradings in today's actions. With holiday season approaches and warm weather, I think they will have a good Q4. Therefore, I initiate my position again @ $59.9. I am expecting a quick rebound to $64~65 in near term.
USO is in red again. It has been in the narrow range between $10 and 10.5 for more than one month now. UNG touched all-time low again in the morning before reversing the trend by finishing green. I increased my position in Tellurian Inc. (TELL). Now it is 1.5% in my portfolio with average price of $9.8. I like it as Natural Gas player, which has a small-cap (2B) and big potential. CEO Meg Gentle is formerly vice president of marketing at Cheniere (LNG). They buy US productions and export LNG to foreign countries (e.g., Japan). Due to the cheap NG price in US and increasing global demand, I am optimastic of their future. Be cautious of the volatility (-3.3% today, beta 1.15 --- high beta means high volatility).
Increase TELL to lower average price to $9.8
Paypal (PYPL) also beats both top and bottom line, +4% now.
ADBE jumped 12% to new high after the company ups EPS estimates for FY18 from $5.15 to $5.50 and FY19 from $6.29 to $6.63. 48 P/E is justified by high revenue growth rate (more than 20% from 2-years ago) and healthy margin. It is in my watch-list.
Gild (+2%): New cancer drug Yescarta for lymphoma (developed by Kite, bought in August $11.9B) got approved by FDA yesterday. The list price for Yescarta, which is to be administered just once to each patient, would be $373k. The price is well below that of the first drug in this new class - Novartis $475k Kymriah (approved in August). Spokeswoman Amy Flood said: "We are in ongoing and active discussions with payers, and we have communicated our openness to considering different solutions that improve patient access." If it cures the patient, it definitely saves insurers money in long run. Gilead said about 7,500 lymphoma patients each year is US would be eligible for CAR-T therapy, which means 2~3B market in US. Jefferies analyst Michael Yee projects up to $250M in 2018. The American Cancer Society estimates that 72k people will be diagnosed this year and 20k will die. This type of cancer accounts for about 4% of all cancers in US. If GILD can deliver good Q4 earning, $100 will be the new floor.
UAL (-12%) has its bloody day after ER. The ER turned out to be fine. However, the before-tax margin disappointed investors. I sold all my shares by 10/10, when UAL reached above $68. I called to be cautious about their ER in my post on 10/10. I believe there are profit-taking and day-tradings in today's actions. With holiday season approaches and warm weather, I think they will have a good Q4. Therefore, I initiate my position again @ $59.9. I am expecting a quick rebound to $64~65 in near term.
USO is in red again. It has been in the narrow range between $10 and 10.5 for more than one month now. UNG touched all-time low again in the morning before reversing the trend by finishing green. I increased my position in Tellurian Inc. (TELL). Now it is 1.5% in my portfolio with average price of $9.8. I like it as Natural Gas player, which has a small-cap (2B) and big potential. CEO Meg Gentle is formerly vice president of marketing at Cheniere (LNG). They buy US productions and export LNG to foreign countries (e.g., Japan). Due to the cheap NG price in US and increasing global demand, I am optimastic of their future. Be cautious of the volatility (-3.3% today, beta 1.15 --- high beta means high volatility).
My Trades Today
Bought UAL @ $59.9Increase TELL to lower average price to $9.8
Earnings:
Skechers (SKX) beats both top and bottom line, +27% now in AH. It is in my watch-list. I sold my shares @ $22 last Nov, never had the chance to buy under $20 again.Paypal (PYPL) also beats both top and bottom line, +4% now.
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