The Medicines Company(NASDAQ:MDCO) has had a really tough first half of 2014, and the stock price shows it. When one of its drugs did not receive approval from regulators and a court decision concerning one of its drugs going generic went against the company, the stock dropped 44%.
But based on a pipeline of eight more drugs and the recent approval of Orbactiv, a treatment for drug-resistant infections, analysts say this stock has 28% upside in just the next year.
Medicines Company is expecting 10% annual growth per year for the next five years, with revenues moving from $720 million to $3 billion by 2016.
A P/E of 18.5 for 2015 earnings does not make Medicines Company look like much of a bargain, but when you look at all the new drugs on the horizon and the huge numbers the company can generate, the bargain story begins to take shape.
Medicines Company: Take a look at this one.
The technology revolution we have been living through since the ‘90s has made it possible to not only live in your basement indefinitely on your game console, but never have to speak to anyone on the phone or in person, ever. Just text or email them.
You can buy anything from anywhere in the world, and you don’t have to have any contact with other people, or leave your home for that matter. Just go online.
And now it’s possible to eliminate people completely from the investing process.
Yes, robo-financial management.
This new form of money management allows you to fill out a form, online of course, that describes your risk tolerance and expected returns, and the computers do the rest.
Machines will buy your stocks and funds, and even rebalance your portfolio for you. No people are involved, ever!
It is supposed to take the emotion out of investing, which would be a good thing. But here are