Why Celgene Corporation, Gilead Sciences, and Priceline.com Are Today’s 3 Worst Stocks

Patent problems plague two of Friday's poorest performers; power-hungry Putin's antics pummel the stock market

Mar 14, 2014 at 7:57PM

Tensions between Russia and Ukraine continue to escalate, and Wall Street continues to hate it. Investors chose to reduce their exposure to stocks today, given the risk that the situation gets dramatically worse during the weekend. Celgene Corporation (NASDAQ:CELG), Gilead Sciences (NASDAQ:GILD), and Priceline.com (NASDAQ:PCLN) ended as the three worst stocks in the S&P 500 Index (SNPINDEX:^GSPC) Friday; the S&P lost five points, or 0.3%, to end at 1,841.

Two of the three most miserable performers today were biotech players. Celgene Corporation finished as the largest retreater in the 500-stock index, losing 4.2% in trading today. A pesky protection of intellectual property, the "patent," is to blame for Celgene's loss today, as a U.S. judge scheduled an earier-than-expected hearing on Revlimid, a blood disease treatment. While investors generally don't expect the patent challenge to cause problems, the fact that a small risk exists, and is now closer on the time horizon, worried investors.

Unlike Celgene, Gilead Sciences' patent woes aren't due to an earlier resolution in the courts, but a brand-new problem that just popped up. Idenix Pharmaceuticals initiated a patent infringement lawsuit against Gilead today, causing the stock to shed 3.8% in trading. Gilead's hepatitis C drug sofosbuvir is the subject of contention; Idenix claims it was first to patent the treatment in Europe. These two companies clearly aren't fond of each other, with Idenix filing two suits against Gilead in December. Investors should resist the temptation to equate lawsuits with valid plaints, since frivolous cases come through the courts all the time in the health-care industry.

Finally, shares of Priceline.com Incorporated stumbled 2.5% today, though there were no emerging patent fiascos for shareholders to worry about. Priceline.com shareholders haven't had much to worry about for years, actually, as the online travel booking industry has gone absolutely bonkers. Not only is Internet access on an irreversible trek toward ubiquity, but with the economic recovery and William Shatner as your pitchman, it's no wonder shares are up more than 1,500% in the last five years. On top of that, as my colleague Daniel James argues, impressive fourth-quarter performance from Priceline and its competitors show the industry is still flying high.

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John Divine has no position in any stocks mentioned. You can follow him on Twitter @divinebizkid and on Motley Fool CAPS @TMFDivine.

The Motley Fool recommends Celgene, Gilead Sciences, and Priceline.com. The Motley Fool owns shares of Priceline.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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