| Stock (Symbol) | Stock Price | |
Alexion Pharmaceuticals (ALXN) |
$156 |
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| Data is as of | Expected to Report | Sector |
May 7, 2014 |
Jul 21 – Jul 25 |
Healthcare |
| Sharek’s Take | ||
 Alexion Pharmaceuticals is one of the best growth stocks I don’t already own, and I will take advantage of this pullback in the stock to add t to the Growth Portfolio and Aggressive Growth Portfolio. Alexion specializes in orphan drugs, which focus on rare diseases and cost a lot because there’s limited demand. Recently, ALXN’s blockbuster drug Soliris is being approved to treat additional diseases and this is helping profits. Biotechs were on fire the last year, and now they have corrected with the market, this gives me a chance to get this 32% grower for 32 times earnings, and 15% – 20% off its high. |
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| One-Year Chart | ||
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| Earnings Table | ||
 Sales rose 68% last quarter. Wow. Profits increased 135% but a lot of that was attributed to France increasing reimbursements for Soliris. A lot of the back payment hit last quarter.ALXN crushed estimates by 66 cents, but that may have been a one-time thing with the France/Soliris back payments hitting. Annual Profit Estimates surged higher, and have risen a lot the last six months. Quarterly profit growth shows at least 33% growth coming the next three quarters. The 4QtrsOutEst has tough comparisons to last qtr which included the France payment. |
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| Fair Value | ||
 Its amazing to me I didn’t buy this stock sooner, but drug companies are hard for me to analyze. This stock was such a buy a few years ago when the P/E was in the teens. Still, there’s solid upside to 2014 & 2015’s Fair Value. |
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| Ten-Year Chart | ||
 This stock went on a parabolic run earlier in the year, and thankfully it has corrected to give us an opportunity to buy in. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
10 of 26 |
I welcome the addition of Alexion Pharmaceuticals to my portfolios. I’m impressed with the company’s rate of growth and am glad we got in at a reasonable price. A company that grow profits 32% a year has an opportunity to double their stock price every two years. ALXN is raked 10th of 26 stocks in the Growth Portfolio Power Rankings. I will sell Nu Skin (NUS) to buy ALXN in the Aggressive Growth Portfolio and ALXN will rank 9th of 12 stocks in this portfolio. |
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Aggressive Growth Portfolio
8 of 12 |
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Last qtr this stock had a P/F of 41, now the P/E is only 