Hola Saul,
I Noticed that CELG has been taking a pounding today. Has it come into the fair price range for a purchase yet?
Your opinion.
Thanks,
Mykie
They reported earnings this morning. I haven’t looked at the results yet.
I Noticed that CELG has been taking a pounding today. Has it come into the fair price range for a purchase yet?
Mykie,
I added some today.
Saul
http://www.fool.com/investing/general/2014/04/24/celgene-bea…
A lot of my stocks are taking a pounding today, but the pharmas are all over the place. I think that there is a lingering fear about drug pricing and what that will look like in the future. (We all have an interest in this issue.) and some hot money seems to be playing in the IBB which is roiling the underlying stocks. Buy the ones that already have approved drugs and get the pipeline essentially for free.
Mykie,
I have an average sized position in CELG. I will be looking to add if it drops some more. I 'm watching GILD and some of the biotech ETFs; biotech has been beaten down, apparently due to sector rotation. Anyways, I am being a bit cautious as biotech has been phenomenal over the past 5 years, so may be some correction is over due.
Anirban
PS: you asked for Saul’s feedback, which you did get, so apologies if I am talking for no good reason.
PS: you asked for Saul’s feedback, which you did get, so apologies if I am talking for no good reason.
Anirban, never hesitate to speak up and add your thoughts. That’s what this board is all about!
Thanks,
Saul
Thanks Saul!
I have been silent lately. It’s been a busy few weeks.
Anirban.
Anirban
PS: you asked for Saul’s feedback, which you did get, so apologies if I am talking for no good reason.
Thanks Anirban,
All feedback is a gift so please keep it coming. I bought some Celg at 140 and that’s my first position in the stock. I’d like to increase it but I’m nervous buying at that price. I really don’t know what is a good price, only that on that day, I got a bargain. For when to jump in on a speeding train, I use guys like you and Saul, that do the good research on the numbers since I can’t/won’t do those and I use my own judgement on whose judgement to use. Complicated hey?
Mykie
I bought some Celg at 140 and that’s my first position in the stock. I’d like to increase it but I’m nervous buying at that price.
Mykie,
Don’t be scared by the price of the stock. The trailing earnings for CELG are $6.26. Dividing that into a stock price of $140 you get a PE of 22, which is very reasonable.
Think of it as having 10 shares at $14, with earnings of 63 cents, and it puts in in perspective and it’s easier to get your mind around it. Also you won’t get scared at a $2 move, for instance, if you think of it as a 20 cent move on your $14 stock.
Saul
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Don’t be scared by the price of the stock. The trailing earnings for CELG are $6.26. Dividing that into a stock price of $140 you get a PE of 22, which is very reasonable.
Think of it as having 10 shares at $14, with earnings of 63 cents, and it puts in in perspective and it’s easier to get your mind around it. Also you won’t get scared at a $2 move, for instance, if you think of it as a 20 cent move on your $14 stock.
Saul
Saul, Thanks for that, really. It’s just what I need, a baby step in the right direction.
Now, where would I go to get the trailing earnings? On the Yahoo finance sheet for CELG, it says $3.37 earnings/share. Shouldn’t I be concerned about the forward EPS in addition to the trailing and if so, what is the $3.37?
Secondly, the PE of 22…I understand different sectors have different reasonable PE’s. So do you have a list of all the reasonable PE’s per sector? If 22 is reasonable, then can I say AFOP’s PE of 18 is cheap or should I worry about the different sector?
And all these PE’s shown on GOOG finance or Yahoo finance…are they all trailing year, trailing quarter, forward (what length of time), or daily based upon the price of the stock, etc?
Sorry for this but once I get it, I pretty much get it…if you know what I mean.
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