Sales Growth Powers Gilead to New Highs

Gilead Sciences, Inc. (GILD) is a biopharmaceutical company that discovers, develops, and commercializes drugs for life threatening diseases. Their products are Stribild, Complera/Eviplera, Atripla, Truvada, Viread, Emtriva, Tybost, and Vitekta for the treatment of human immunodeficiency virus (HIV) infection in adults; and Sovaldi, Viread, and Hepsera products for the treatment of liver disease.

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• We identified a low valuation in Gilead during the GILD induced biotech swoon at $69.03. The shares have now reached our high valuation target of $97.00.

• The next earnings release is due in late October and between now and then the shares will likely experience turbulence. At Purple Chips, we follow the plan and buy at low valuations and sell when a stock is fully valued.

• HIGH VALUATION IN GILEAD SCIENCES AT $USD 97.70 (GILD, $99.49) HALF POSITION

• TOTAL RETURN (paid no dividends) +41.0%

PURPLE CHIPS TARGET: $97.00 POSITION SIZE: HALF (2.5) P/E: 20.26X DIV: NIL MKT CAP: $150B Debt: $4B RETURN ON CAPITAL: 77.4% EARNINGS YIELD: 4.1% 5 YR EPS Growth rate*:26.0% P/E/G Ratio: 1.24 EPS: $2.04 2015 EST.: $9.32 2016 EST.: $10.19

*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.