Even if you don’t use it in your stock-picking activities, if you have even the slightest amount of appreciation for technical analysis, Gilead Sciences, Inc. (NASDAQ:GILD) is a terrifying stock to own now. GILD shares have not only fallen out of a long-term bullish channel, but as of today have crossed under an all-important floor. If history is any clue, this stock just passed the bearish point of no return.
Yes, this is the same Gilead that makes several HIV/AIDS therapies like Truvada, as well as a handful of hepatitis drugs. And yes, this is the same Gilead Sciences that have pumped up its top line for ten straight years, and turned a profit in all but one of them (and GILD was still profitable on an operating basis that one off year).
The problem is, this is the same Gilead that has watched its stock rally at a far faster pace than its sales or earnings have since 2012, and reality has finally caught up with the stock. From here – even with the 21% pullback since late February – the stock’s still priced at a frothy trailing P/E of 37.4. The pros expect the company to more than double (nearly triple, actually) per-share earnings by 2015, with the ramp-up starting this year. That big ramp-up, however, was based on the assumption that a key drug would be more marketable than it now seems to be.
Top 5 Information Technology Companies To Watch In Right Now: H&Q Life Sciences Investors (HQL)
H&Q Life Sciences Investors (the Fund) is a diversified, closed-end management investment company. The Fund’s investment objective is long-term capital appreciation through investment in life science companies (including biotechnology, pharmaceutical, diagnostics, managed healthcare and medical equipment, hospitals, healthcare information technology and services, devices and supplies) agriculture and environmental management. The Fund invests primarily in securities of public and private companies.
The Fund may invest in venture capital and other restricted securities if these securities would comprise 40% or less of net assets. The Fund may purchase and sell (or write) put or call options on any security in which it is permitted to invest. It may purchase and sell (write) options on stock indices (index options). H&Q Life Sciences Investors’ investment advisor is Hambrecht & Quist Capital Management, LLC.
- [By Nate Pile]
This recommended fund—Hambrecht & Quist Life Sciences Fund (HQL)—was also our top pick last year, and the fund rose 44% in 2013.
In addition to rising in value, the fund has a dividend policy of paying out 2% of its net asset value of each quarter.
- [By Harry Domash, Publisher, DividendDetective and Winning Investing]
Harry Domash: Yeah, in fact, H&Q Life Sciences, ticker (HQL), is actually a closed-end fund, but it invests entirely in biotech and pharmaceutical companies, and if you look around the world, the investing stocks right now—besides the social media stocks—that’s really the one area that has had a lot of recent growth and we expect that to continue.
I think the closed-end fund, and we’ll get into that maybe a little bit later, but closed-end funds are a good way to cover it, when you’re talking about a sector like that.
Johnson & Johnson is an interesting case, because, as you know, Johnson & Johnson is a big company that invests, and that owns a lot of different companies itself in the medical field.
You know, it owns hundreds of operating companies and it’s primarily in the pharmaceuticals, and medical devices, and in consumer products, but Johnson & Johnson was a mismanaged company for a while and they were really underperforming their peers.
In fact, some of their factories were closed, their pharmaceutical production factories were forcibly closed by the government because they didn’t meet standards, but they were taken over by a new CEO a few years ago, two or three years ago, and now things are improving, so Johnson & Johnson is kind of coming from down and out to being a leading company again.
They’ve got a lot of products, cancer-type products, and things on the pipeline and it just seems like things are going very well so we have hopes that Johnson & Johnson has reported the last two quarters are the first ones that have really been decent, they really showed growth, and then we expect that to accelerate so we’re pretty hot on Johnson & Johnson now.
Steve Halpern: One particularly interesting portfolio that you maintain that I haven’t seen anywhere else is based on closed-end funds that pay monthly dividends&mdash
Top 5 Information Technology Companies To Watch In Right Now: Dril-Quip Inc. (DRQ)
Dril-Quip, Inc. designs, manufactures, sells, and services engineered offshore drilling and production equipment for use in deepwater, harsh environment, and severe service applications worldwide. It operates in three segments: Western Hemisphere, Eastern Hemisphere, and Asia-Pacific. The company’s principal products consist of subsea and surface wellheads, subsea and surface production trees, subsea control systems and manifolds, mudline hanger systems, specialty connectors and associated pipe, drilling and production riser systems, liner hangers, wellhead connectors, and diverters. Its products are used for drilling and production of oil and gas wells on offshore platforms; tension leg platforms, which are floating production platforms connected to the ocean floor via vertical mooring tethers; Spars, a floating cylindrical structure; and floating production, storage, and offloading monohull moored vessels, as well as to explore for oil and gas from offshore drillin g rigs, such as floating rigs and jack-up rigs. The company also provides services, including technical advisory services, rework and reconditioning services, and rental of running tools for use in the installation and retrieval of its products. It primarily serves integrated, independent, and foreign national oil and gas companies, as well as offshore drilling contractors, and engineering and construction companies. Dril-Quip, Inc. was founded in 1981 and is headquartered in Houston, Texas.
- [By Jake L’Ecuyer]
Dril-Quip (NYSE: DRQ) was also on the rise, gaining 12.27 percent to $107.68 after the company’s fourth quarter report impressed the street.
Equities Trading DOWN
Shares of Endologix (NASDAQ: ELGX) were down 24.85 percent to $13.43 on lowered guidance, analyst downgrades. Oppenheimer downgraded the stock from Outperform to Market Perform and cut the price target from $20.00 to $16.00.
- [By Aaron Levitt]
It takes an awful lot of muscle and technological know-how to frack and drill unconventional wells. So the oil service industry is poised to continue churning out hefty profits in years to come. That fact has benefited mid-cap maker of drill-bits, pipes and other rig equipment Dril-Quip (DRQ).
- [By Jeff Williams]
For investors looking for a small-cap company in a sector poised for extensive growth, Dril-Quip Inc. (DRQ) is a growth-oriented, offshore oil and gas service company with many catalysts that will increase shareholder value.
Top 5 Information Technology Companies To Watch In Right Now: American Woodmark Corp (AMWD)
American Woodmark Corporation, incorporated on April 21, 1980, manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets. The Company offers framed stock cabinets in approximately 550 different cabinet lines, ranging in price from relatively inexpensive to medium-priced styles. Styles vary by design and color from natural wood finishes to low-pressure laminate surfaces. The product offering of stock cabinets includes 86 door designs in 18 colors. Stock cabinets consist of a common box with standard interior components and a maple, oak, cherry, or hickory front frame, door and/or drawer front. The Company’s product is primarily sold under the brand names of American Woodmark, Timberlake, Shenandoah Cabinetry, Potomac, and Waypoint Living Spaces.
The Company’s product is sold on a national basis across the United States to the remodeling and new home construction markets. The Company services these marke ts through three primary channels, which include home centers, builders, and independent dealers and distributors. The Company provides complete installation services to its direct builder customers through its network of nine service centers that are strategically located throughout the United States. The Company distributes its products to each market channel directly from four assembly plants through a third party logistics network. The primary raw materials used include hard maple, oak, cherry, soft maple, and hickory lumber and plywood.
- [By John Udovich]
After the bedroom, the kitchen is probably the place where we spend the most time awake in our homes with small cap kitchen stocks Caesarstone Sdot-Yam Ltd (NASDAQ: CSTE) and American Woodmark Corporation (NASDAQ: AMWD) along with diversified midcap Fortune Brands Home & Security Inc (NYSE: FBHS) all putting in a good performance. After all, any sort of housing recovery with more new homes being sold will help kitchen stocks and so will increased sales of older or foreclosed homes that need to have their kitchens remodeled. But which is the better kitchen stock for investors? Here is closer look at all three:
Top 5 Information Technology Companies To Watch In Right Now: Sysco Corporation(SYY)
Sysco Corporation, through its subsidiaries, distributes food and related products primarily to the foodservice or food-away-from-home industry in North America and Europe. The company offers a line of frozen foods, such as meats, fully prepared entrees, fruits, vegetables, and desserts; a line of canned and dry foods; fresh meats, custom-cut fresh steaks, other meat, seafood, and poultry; dairy products; beverage products; imported specialties; and fresh produce. It also supplies various non-food items, including paper products, such as disposable napkins, plates, and cups; tableware, which include china and silverware; cookware comprising pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. In addition, the company offers personal care guest amenities, equipment, housekeeping supplies, room accessories, and textiles to the lodging industry. It serves restaurants, hospitals and nursing homes, schools and colleges, hotels and mote ls, lodging establishments, and other foodservice customers. Sysco Corporation was founded in 1969 and is headquartered in Houston, Texas.
- [By Anna Prior]
Sysco Corp.(SYY) said its earnings for the first three months of the year fell 10% as higher expenses outpaced a rise in revenue.
- [By Laura Brodbeck]
Earnings Releases Expected: Pfizer, Inc. (NYSE: PFE), Sysco Corporation (NYSE: SYY), Occidental Petroleum Corporation (NYSE: OXY) Economic Releases Expected: US ISM non-manufacturing PMI, US services PMI, Indian services PMI
- [By Rich Smith]
Only five privately held firms will participate in this two-year contract (extendable up to five years). No publicly traded firms at all were chosen to participate — but publicly traded firms did still win a few of the day’s smaller contracts, among them:
A $76.1 million contract modification awarded to the Bell-Boeing Joint Project Office, a joint venture between Textron (NYSE: TXT ) and Boeing (NYSE: BA ) , which instructs the JPO to delivery one single additional CV-22 tiltrotor aircraft to the U.S. Air Force by December 2016. A $39.4 million fixed-price with economic-price-adjustment contract for Sysco (NYSE: SYY ) to provide “prime vendor food and beverage support” to the U.S. Army, Navy, Air Force, and Job Corps in Florida through April 16, 2019. A $32.3 million option exercise for NuStar Energy L.P. (NYSE: NS ) subsidiary Shore Terminals LLC to provide “petroleum storage services” to the U.S. Army, Air Force, and Marine Corps through Nov. 30, 2016. A $7.7 million undefinitized contract modification compensating Lockheed Martin (NYSE: LMT ) for “non-recurring sustainment activities” performed on behalf of the government of the United Kingdom, related to the latter’s purchase of F-35 Lightning II stealth fighter jets. This contract has a completion date of June 201
Top 5 Information Technology Companies To Watch In Right Now: Kulicke and Soffa Industries Inc.(KLIC)
Kulicke and Soffa Industries, Inc. designs, manufactures, and sells capital equipment and expendable tools used to assemble semiconductor devices, including integrated circuits, high and low powered discrete devices, light-emitting diodes, and power modules. It also services, maintains, repairs, and upgrades its equipment. The company operates in two segments, Equipment and Expendable Tools. The Equipment segment manufactures and sells a line of ball bonders, heavy wire wedge bonders, stud bumpers, and die bonders. Its Ball bonders are used to connect very fine wires, primarily made of gold or copper, between the bond pads of the semiconductor device or die, and the leads on its package; Heavy wire wedge bonders are used in the power semiconductor and automotive power module markets; and Die bonders are used to attach a die to the substrate or lead frame, which will house the semiconductor device. This segment?s Stud bumpers mechanically apply bumps to die, while still in the wafer format, for some variants of the flip chip assembly process. The Expendable Tools segment manufactures and sells various expendable tools for a range of semiconductor packaging applications. Its products include capillaries, bonding wedges, and saw blades. The company?s customers primarily comprise semiconductor device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers, and automotive electronics suppliers in the United States and the Asia/Pacific region. Kulicke and Soffa Industries sells its products through manufacturers? representatives and distributors. The company was founded in 1951 and is headquartered in Singapore.
- [By Jake L’Ecuyer]
Equities Trading UP
Kulicke and Soffa Industries (NASDAQ: KLIC) shares shot up 8.95 percent to $13.76 after the company reported upbeat Q2 earnings and issued a strong Q3 revenue forecast.
- [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool’s free investing community, chip equipment maker Kulicke and Soffa Industries (NASDAQ: KLIC ) has earned a coveted five-star ranking.