Gilead (NASDAQ:GILD), along with the biotech sector as a whole, has sold off sharply over the last weeks, marking a new 52 week low of just above $70 per share in October:
Gilead is down six percent over the last month, slightly less than the IBB (NASDAQ:IBB) and XBI (NYSEARCA:XBI) biotech indexes. With Gilead's current market capitalization of $98 billion I believe the company is undervalued and should utilize its huge cash reserves and high cash flows to reduce the share count rapidly, thereby increasing shareholder value.
