| Stock (Symbol) | Stock Price | |
Celgene (CELG) |
$132 |
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| Data is as of | Expected to Report | Sector |
July 31, 2015 |
Oct 21 – Oct 26 |
Healthcare |
| Sharek’s Take | ||
 This month Celgene bought drug maker Receptos, which could boost its sales from $9.3 billion a year by another $6 billion. Receptos has a potential blockbuster in Ozanimod which is in Phase 3 trails and should better than the top MS drug on the market. Plus, data indicates Ozanimod might also work against ulcerative colitis, Crohn’s disease, lupus or psoriasis. Investors loved the news, and sent CELG to an All-Time High. 2QtrsAgo management forecasted $7.50 in profits by 2017 and $12.50 in profits by 2020. A 25 P/E on both would net a stock price of $188 in 2017 and $313 in 2020. And those figures do not include the Receptos, which CELG paid all cash for so all the extra profits will go to earnings. Without including Receptos, Celgene’s profits are set to grow 29% this year and 25% next, and the stock has a P/E of just 27 — a bargain. Celgene is a top tier stock on the market, my #1 or #2 holding in almost every account. |
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| One-Year Chart | ||
 Boom, break out. Everything on this chart is perfect. What a great stock. I should print this and frame it, put it on the wall. |
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| Earnings Table | ||
 Celgene’s sales rose 22% last qtr, with profits surging 37%. The company buys back shares which helps EPS.
Celgene beat by 9 cents, the best beat in more than a year. |
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| Fair Value | ||
 After writing this report I feel I’m didn’t reach high enough on CELG’s P/E. This stock could have a P/E of 35, which it really hasn’t had since 2008. Even with a 30 P/E I have a 2016 Fair Value of $180. |
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| Ten-Year Chart | ||
 Great ten-year chart,, the stock was a solid value from 2009-2011. I bought in after that, getting CELG with a P/E in the teens. Although the recent surge is steep, the stock had some catching up to do. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
2 of 23 |
Celgene just put fuel in the tank with Receptosas it continues to roll higher. I think this stock is undervalued, and when it catches up to where it should be it has the ability to compound at 25% a year thereafter. Plus, CELG is a relatively safe Healthcare stock. |
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Aggressive Growth Portfolio
2 of 8 |
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