בס״ד

Pharma Bulls Overdose – Severe Withdrawal, Convulsions Expected (BMY)

Posted on April 4, 2022

Don’t look now, but the world is sliding with ever greater alacrity toward its millennial climax.

And that means the evil ones are headed toward a reckoning.

For the rest of us that means unrest, discomfort and even some pain – may it pass b’rachamim.

So what to do?

Our job, of course, good Jews and Noahides, is to prepare ourselves for the new reality that awaits.  To build our hothouses, continue raising our flocks, and in all ways buttress our resilience and self-reliance to better weather the storm that approaches.

That also means building a network of like-minded souls to commune and barter with as the great day of Hashem approaches.

May we all share the burdens and support each other b’ofen ruchani and gashmi until the third temple is standing and the world has entered a new sabbatical reality.

And now back to our drug-ridden dream-world.

Our play today is against Bristol Myers Squish (NYSE:BMY), New York City’s criminal drug cartel, whose stock is due for a payback pill for all its malfeasance over (at least) the last 20 years.

But that’s a separate story.

Today’s trade is built on a minor decline producing a psychedelic 1573% profit.

——————————————-

We start with the company’s fundamentals –

  • BMY trades with a P/E of 23.68, though analysts see that shrinking by almost two thirds (!) a year from now.  Consensus forward P/E for the stock is 8.94.  That is to say, earnings will have to nearly triple, or the stock retrench by some 60% (or some combination thereof) to keep in line with Wall Street’s expectations.
  • Annual Yield is 2.93% – and that’s fine.
  • Price to Book is on the high side at 4.52,
  • As is Debt/Equity at 1.24.
  • And finally, insiders sold $9 million in stock in the last two weeks, their highest quantity since last August, just before the stock tumbled by 23%.

BMY is making lots of money from its current oncology offerings, in particular, but competition in the field is stiff, and the market is already pricing in the coming year’s gains, in our view.

There’s little upside rom here, as the chart below shows –

Breakeven arrives at $73.74, just eight cents below the current price.

And the full payload is delivered on a decline of just 1.7%.  Nuts!

The G-d of Heaven and Earth watches over all who study His holy Torah

and perform acts of gemilut chasadim.

They will be the ones to arrive on the other side.

So there you have it, good Jews and Noahides.

Now get it done.

With kind regards,

Hugh L. O’Haynew

 

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