This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Short Squeeze Stocks Ready to Pop in October

Gilead Sciences

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

2013 has been a blockbuster year for Gilead Sciences ( GILD) -- shares of the $96 billion biopharmaceutical company have charged more than 70% higher since the start of the year. But that upward momentum hasn't kept short sellers at bay; it's only made them shout their value argument louder. As I write, GILD carries a short interest ratio of 10.01, indicating that it would take more than two weeks of buying pressure for short sellers to exit their bets against this stock.

>>4 Biotech Stocks Under $10 Making Big Moves

Gilead's business centers around creating and marketing drugs that fight infectious diseases, with a focus on HIV and hepatitis B and C. Gilead's HIV treatments are making waves in the health care field -- the all-in-one pill Atripla dramatically simplifies the daily regimen for HIV patients, for instance. The firm also made an $11 billion bet on treating hepatitis C through the acquisition of drug maker Pharmasset. That diversification should be welcome for investors in this concentrated stock.

While patent expirations are a concern for Gilead, the firm's keystone HIV patents don't start expiring until 2018, ample time for the firm to develop new formulations and to keep adding other diseases to its hit list. Financially, GILD is in solid shape in spite of its transformational acquisition efforts, with $3 billion in cash and investments largely offsetting a $7.3 billion debt load.

There's no question that Gilead isn't exactly cheap right now, but it's trajectory isn't showing any signs of slowing either.
2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BDX $137.71 2.10%
CMG $726.30 2.80%
GILD $104.50 3.00%
INTU $86.50 2.90%
PAYX $44.65 2.70%

Markets

Chart of I:DJI
DOW 16,439.74 +88.36 0.54%
S&P 500 1,948.86 +35.01 1.83%
NASDAQ 4,749.9790 +113.8740 2.46%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs