Sunday, October 5, 2014

What's stocks are going to be hot in 2015. According to all the TV commercials I see and the news on every channel, its DRUGS!"

Dow Jones Industrial Average 17,009.69 (Down) Week ending 10-03-2014

Every other commercial on TV these days is some kind of DRUG commercial. I feel like I am living in Ray Bradbury's movie "Fahrenheit 451", where in the movie Julie Christie is watching all the drug commercials on Government TV and all the books in the world are going away and being destroyed. It's all happening as predicted. Aldous Huxley's Brave New World with everybody on the Soma compound! Well if that's the deal , I should take advantage and practice some Reflexivity like George Soros, and buy a rock solid, no risk, drug stock ahead of the curve.

  Celgene Corp. (Symbol CELG, $95.21) is a stock to buy into as we go through the 4th quarter and going into 2015.

 Celgene is part of the big drug machine economy. Last year CELG had $7.033 Billion dollars in sales. 3 year Sales growth has been 17%. Those sales produced $1.414 billion in Net Annual Income. Celgene operates at a Gross Profit Margin of 94.72%.

What about my Freewilly standard measures of ROE and PEG?  Return on Equity for the company is 27.92%, (and IBD says that the annual Return on Equity is actually 45.43%?).  The PEG ratio on the stock is 1.19. So both of these numbers are excellent.

 Earnings look good. 3 year annual earnings have been 26% and over a 5 year period they have been 24.40%. Earnings per share for 2013 were $2.99 and for 2014 projected at $3.68 per share. 2015 earnings are projected out at $4.86 per share.

The ratings on Celgene in IBD are 99-95-91 and A+ and A. Insiders buying looks good. Analysts have 18 buy recommendations on the stock. 

The one year total return on the stock is 21.08%. Quarterly Free Cash Flow is $478 Million dollars. The Quick Ratio and Current ratio both look good on the stock. 

All in all this is a solid pick for your 2015 portfolio. It is fairly valued here, so accumulate it on tips in the market.

Just finished in time for the NFL One o'clock Football games to start. 

Have a great week and enjoy this beautiful weather in the eastern US.


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