Undervalued Stock Blog

Recommended Stocks in Berkshire Hathaway's Investment Portfolio

2012-05-07T22:34:44Z

"... common stocks are subject to irrational and excessive price fluctuations in both directions ..."
--Benjamin Graham

Berkshire Hathaway Stocks

Recommended Stocks in Berkshire Hathaway's Investment Portfolio:

American Express AXP
Coca Cola KO
Johnson & Johnson JNJ
Procter & Gamble PG
Wal-Mart Stores WMT

Undervalued-Stock.com issues BUY rating for GILEAD SCIENCES, INC. (GILD)

2012-04-17T00:32:39Z

GILEAD SCIENCES, INC. (GILD)

Undervalued-Stock.com issues a BUY rating for one or more of the following reasons:

earning history is stable
Price to earnings (P/E, PE) ratio is below its average PE ratio for the last 10 years
selling at a price below its book value
trailing 3-years earnings have risen over the past 10 years
credit rating is AAA, AA, or A
did not have a loss during the last recession
Price to book ratio is below its historical average
long term earnings growth increase
strong competitive position
successful business execution
business type and size

GILEAD SCIENCES, INC. (GILD) STOCK RESEARCH

Gilead Sciences, Inc. (Gilead, we or us), incorporated in Delaware on June 22, 1987, is a research-based biopharmaceutical company that discovers, develops and commercializes innovative medicines in areas of unmet medical need. With each new discovery and experimental drug candidate, we seek to improve the care of patients suffering from life-threatening diseases around the world. Gilead’s primary areas of focus include human immunodeficiency virus (HIV)/AIDS, liver diseases such as hepatitis B and C and serious cardiovascular/metabolic and respiratory conditions. Headquartered in Foster City, California, we have operations in North America, Europe and Asia Pacific. We continue to seek to add to our existing portfolio of products through our internal discovery and clinical development programs and through a product acquisition and in-licensing strategy.

Over the past year, we executed our philosophy and strategy to bring best-in-class drugs to market. In keeping with this strategy, we completed several acquisitions and licensing transactions to enhance our pipeline. We also expanded our single-tablet regimen product offerings for the treatment of HIV with the launch of Complera/Eviplera (emtricitabine/rilpivirine/tenofovir disoproxil fumarate) and the anticipated 2012 launch of Quad, which combines four of our HIV medicines in a once-daily single-tablet regimen and is pending Food and Drug Administration (FDA) approval.

Our largest transaction was the acquisition of Pharmasset, Inc. in January 2012 for $11.1 billion. For several years, we have focused a large proportion of our research and development effort on discovering and advancing direct-acting antivirals for the treatment of chronic hepatitis C virus (HCV). The HCV therapeutic market has been and continues to be vastly underserved. Due to the limitations of available therapies, only a small fraction of individuals who are infected with HCV are diagnosed, and an even smaller fraction of those patients are treated. Prior to May 2011, when the first protease inhibitors were approved, only about half of the patients responded to the standard of care combination of pegylated interferon and ribavirin. The addition of protease inhibitors to the standard of care has resulted in incremental response rates for patients with genotype 1 infection; however, this regimen causes substantial side effects such as fatigue, bone marrow suppression, potentially debilitating rash, anemia and neuropsychiatric effects. As such, discontinuation rates with these triple therapy combinations have significantly increased.

GILEAD SCIENCES, INC.

SELECTED CONSOLIDATED FINANCIAL DATA

(in thousands, except per share data)


	Year Ended December 31,
	2011		2010		2009		2008		2007
CONSOLIDATED STATEMENT OF INCOME DATA:
Total revenues	$	8,385,385	$	7,949,420	$	7,011,383	$	5,335,750	$	4,230,045
Total costs and expenses ⁽¹⁾	$	4,595,544	$	3,987,198	$	3,482,162	$	2,657,209	$	2,065,538
Income from operations	$	3,789,841	$	3,962,222	$	3,529,221	$	2,678,541	$	2,164,507
Provision for income taxes	$	861,945	$	1,023,799	$	876,364	$	702,363	$	635,355
Net income attributable to Gilead	$	2,803,637	$	2,901,257	$	2,635,755	$	1,978,899	$	1,584,902

Net income per share attributable to Gilead common stockholders—basic	$	3.62	$	3.39	$	2.91	$	2.15	$	1.71

Shares used in per share calculation—basic		774,903		856,060		904,604		920,693		929,133

Net income per share attributable to Gilead common stockholders—diluted	$	3.55	$	3.32	$	2.82	$	2.06	$	1.64

Shares used in per share calculation—diluted		790,118		873,396		934,109		958,825		964,356


	As of December 31,
	2011		2010		2009		2008		2007
CONSOLIDATED BALANCE SHEET DATA:
Cash, cash equivalents and marketable securities	$	9,963,972	$	5,318,071	$	3,904,846	$	3,239,639	$	2,722,422
Working capital	$	11,403,995	$	3,243,132	$	2,940,927	$	3,057,416	$	2,271,344
Total assets ⁽²⁾	$	17,303,134	$	11,592,630	$	9,698,559	$	6,936,831	$	5,731,055
Other long-term obligations	$	147,736	$	27,401	$	35,918	$	21,462	$	11,604
Convertible senior notes and unsecured senior notes ⁽³⁾	$	7,605,734	$	3,477,564	$	1,155,443	$	1,098,025	$	1,043,998
Retained earnings	$	1,776,760	$	1,183,730	$	1,995,272	$	300,314	$	198,775
Total stockholders’ equity	$	6,867,349	$	6,121,837	$	6,505,158	$	4,465,583	$	3,752,630

Undervalued-Stock.com issues BUY rating for Exxon Mobil Corp (XOM)

2012-04-16T23:55:04Z

Exxon Mobil Corp (XOM)
Energy : Oil& Gas - Integrated

Undervalued-Stock.com issues a BUY rating for one or more of the following reasons:

earning history is stable
Price to earnings (P/E, PE) ratio is below its average PE ratio for the last 10 years
selling at a price below its book value
trailing 3-years earnings have risen over the past 10 years
credit rating is AAA, AA, or A
did not have a loss during the last recession
Price to book ratio is below its historical average
long term earnings growth increase
strong competitive position
successful business execution
business type and size

EXXON MOBILE STOCK RESEARCH

Exxon Mobil Corporation was incorporated in the State of New Jersey in 1882. Divisions and affiliated companies of ExxonMobil operate or market products in the United States and most other countries of the world. Their principal business is energy, involving exploration for, and production of, crude oil and natural gas, manufacture of petroleum products and transportation and sale of crude oil, natural gas and petroleum products. ExxonMobil is a major manufacturer and marketer of commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a wide variety of specialty products. ExxonMobil also has interests in electric power generation facilities. Affiliates of ExxonMobil conduct extensive research programs in support of these businesses.

Exxon Mobil Corporation has several divisions and hundreds of affiliates, many with names that include ExxonMobil, Exxon, Esso or Mobil. For convenience and simplicity, in this report the terms ExxonMobil, Exxon, Esso and Mobil, as well as terms like Corporation, Company, our, we and its, are sometimes used as abbreviated references to specific affiliates or groups of affiliates. The precise meaning depends on the context in question.

Throughout ExxonMobil’s businesses, new and ongoing measures are taken to prevent and minimize the impact of our operations on air, water and ground. These include a significant investment in refining infrastructure and technology to manufacture clean fuels as well as projects to monitor and reduce nitrogen oxide, sulfur oxide, and greenhouse gas emissions and expenditures for asset retirement obligations. ExxonMobil’s 2011 worldwide environmental expenditures for all such preventative and remediation steps, including ExxonMobil’s share of equity company expenditures, were $4.9 billion, of which $3.2 billion were included in expenses with the remainder in capital expenditures. The total cost for such activities is expected to remain in this range in 2012 and 2013 (with capital expenditures approximately 45 percent of the total).

The energy and petrochemical industries are highly competitive. There is competition within the industries and also with other industries in supplying the energy, fuel and chemical needs of both industrial and individual consumers. The Corporation competes with other firms in the sale or purchase of needed goods and services in many national and international markets and employs all methods of competition which are lawful and appropriate for such purposes.

Operating data and industry segment information for the Corporation are contained in the Financial Section of this report under the following: “Quarterly Information”, “Note 17: Disclosures about Segments and Related Information” and “Operating Summary”. Information on oil and gas reserves is contained in the “Oil and Gas Reserves” part of the “Supplemental Information on Oil and Gas Exploration and Production Activities” portion of the Financial Section of this report.

ExxonMobil has a long-standing commitment to the development of proprietary technology. We have a wide array of research programs designed to meet the needs identified in each of our business segments. Information on Company-sponsored research and development spending is contained in “Note 3: Miscellaneous Financial Information” of the Financial Section of this report. ExxonMobil held approximately 10 thousand active patents worldwide at the end of 2011. For technology licensed to third parties, revenues totaled approximately $129 million in 2011. Although technology is an important contributor to the overall operations and results of our Company, the profitability of each business segment is not dependent on any individual patent, trade secret, trademark, license, franchise or concession.

The number of regular employees was 82.1 thousand, 83.6 thousand and 80.7 thousand at years ended 2011, 2010 and 2009, respectively. Regular employees are defined as active executive, management, professional, technical and wage employees who work full time or part time for the Corporation and are covered by the Corporation’s benefit plans and programs. Regular employees do not include employees of the company-operated retail sites (CORS). The number of CORS employees was 17.0 thousand, 20.1 thousand and 22.0 thousand at years ended 2011, 2010 and 2009, respectively.


	Years Ended December 31,
	2011		2010		2009		2008		2007
	(millions of dollars, except per share amounts)

Sales and other operating revenue (1)	$	467,029	$	370,125	$	301,500	$	459,579	$	390,328
(1) Sales-based taxes included	$	33,503	$	28,547	$	25,936	$	34,508	$	31,728
Net income attributable to ExxonMobil	$	41,060	$	30,460	$	19,280	$	45,220	$	40,610
Earnings per common share	$	8.43	$	6.24	$	3.99	$	8.70	$	7.31
Earnings per common share - assuming dilution	$	8.42	$	6.22	$	3.98	$	8.66	$	7.26
Cash dividends per common share	$	1.85	$	1.74	$	1.66	$	1.55	$	1.37
Total assets	$	331,052	$	302,510	$	233,323	$	228,052	$	242,082
Long-term debt	$	9,322	$	12,227	$	7,129	$	7,025	$	7,183