Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Pharmasset
So what: The deal values Pharmasset at $137 per share and represents a whopping 89% premium to its Friday closing price. Gilead is making a huge bet on the booming market for new hepatitis C treatments, but judging from its 12% decline today, investors aren't exactly thrilled with the price being paid.
Now what: Gilead expects the deal to hurt earnings through 2014 but to add significantly to the bottom line after that. So while the short term looks bumpy, gaining a quick edge on giants like Abbott Labs