Turn Health Care Domination into Checks in the Mail

Bristol-Myers Squibb is a leading global drug maker, with strengths in cardiovascular, anti-infective, and anticancer therapeutics. The company has a very healthy balance sheet with 24 times interest coverage and 50% debt to equity ratio. Company has great growth of 5% revenue growth per year and 18% EBITDA growth. Operating margins are fantastic at 21%. These factors warrant the current reasonable valuation of 16 times EV/EBITDA.
Additional growth factors include the recent work on cancer treatments known as immunotherapy. Bristol is one of the first companies working on this treatment called Opdivo. Opdivo has generated $2.5 billion in sales in just the first half of last year. Opdivo is already approved to treat six different cancers. The drug, in combination with other immunotherapies, could show similar promise for other types of cancer.

The stock technicals look great with a strong uptrend presenting the perfect opportunity to sell a put option at a slightly lower price.

Trade details:
Sell Dec 15 2017 $62.50 Put @ $1.56 or better. Please use a limit order. You are agreeing to buy shares at a 3.8% discount to current share price and an 13.8% annualized return.

(Download the Option Return Calculator right here)

Should the market turn aggressively against us please close the position if Bristol stock closes below $57.2.

Thank you for your reading.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.