Wednesday, February 5, 2014

Xilinx Analysis and Gilead Call

I have a new article at Seeking Alpha:

Xilinx Has A Brighter Future Than Intel

I used Intel as a comparison because it is the best-known of the semiconductor companies.

I also posted my notes on the Gilead Sciences (GILD) Q4 2013 results and analyst call

I think the Gilead results were very good and the coming ramp of Sovaldi for curing hepatitis C infections (HCV) is going to more than justify the current price. However, that is hard to see given the Bear Hug the market is getting so far today.

I believe some stocks are overpriced, but if you are a long-term investor there is a lot of stuff that can be picked up at reasonable prices right now. I am at my portfolio limit for Gilead (near 10% of my holdings) or I would buy more. Because much of the pricing of Gilead is about profits in 2015 and beyond, and the stock has gone up so much in the last 2 years on anticipation of Sovaldi's success, short-term dips in the price should not be a big surprise.

Keep diversified!

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