Down To The “Big Three”:
I am showing my age here as I am referring to the big three biotech plays, which used to be the big four before CELG was acquired by Bristol Myers nearly three years ago. What has happened since then was that GILD had been left out of the trio as it was in the shadows of AMGN and BIIB. That is no longer the case, perhaps as GILD is now in the vaccine arena. But AMGN for one has undergone a strong decline and now trades 25% off most recent 52 week highs, and it did record a bounce off the very round 200 number on 10/12 but it could prove to be temporary. It has slipped 10 of the last 14 weeks. BIIB which has witnessed some very volatile trade in regards to its Alzheimers drug is now 42% off its annual peak. Below is the chart of GILD which sits currently “just” 8% off 52-week highs made in August. The stock is the only one of the three above its 200 day SMA and pays a solid dividend yield of 4.2% (BIIB pays none and AMGN pays a yield of 3.4%). Stay constructive on GILD as long as it remains above its 200 day. It REPORTS earnings Thursday after the CLOSE and 3 of the last 4 have been lower, although in a tepid manner, by 2.2, .6, and .3% on 7/30, 4/30, and 10/29/20.