Why Gilead Sciences, Inc., Wynn Resorts Ltd., and Boston Scientific Corporation Are Today's 3 Worst Stocks

From health care to gambling, these three names were the worst in the stock market today

Jun 9, 2014 at 7:43PM

In the absence of any major economic data, the stock market continued to gain ground today, with the S&P 500 Index (SNPINDEX:^GSPC) even ending at an all-time high. Three stocks, however, finished as standout laggards: Gilead Sciences (NASDAQ:GILD), Wynn Resorts (NASDAQ:WYNN), and Boston Scientific Corporation (NYSE:BSX) were each firmly in the red Monday. The S&P 500, for its part, tacked on 1 point, or less than 0.1%, to end at 1,951.

Shares of Gilead Sciences, whose flagship product, Sovaldi, treats hepatitis C, shed 4.1% today, as a new, deep-pocketed competitor threw its hat in the ring. Perhaps you've heard of Merck? Well, the $170 billion pharma giant was so impatient to jump-start a comprehensive hepatitis C treatment that it paid the highest ever premium in a health-care deal, according to Bloomberg, to acquire Idenix Pharmaceuticals today. The $3.85 billion acquisition rewarded Idenix investors to the tune of 229% today. Gilead Sciences, on the other hand, is now pressured to either lower the price of its $84,000 treatment or invest more heavily in Sovaldi to differentiate it from Merck's new combo offering.

Casino operators Wynn Resorts also had a rough day on Wall Street today, losing 2.9% by the ring of the closing bell. Wynn investors should count themselves lucky for the simple reason that the gaming company has firmly established itself in Macau, the 21st century's gambling capital of the world. But participating in China's exclusive and emerging gambling hotspot brings its own risks, and right now the biggest risk for investors is the possibility that the explosive growth in the region is slowing. After a decelerating month of revenue growth in May, Wells Fargo reported that Macau gaming revenue, by its estimates, continues to decelerate in early June.


An interventional coronary stent. Source: Boston Scientific

Lastly, shares of Boston Scientific fell 2.8% Monday, kicking off the week on a bearish note. While revenue at Boston Scientific has been trending steadily lower for years -- a phenomenon no investor wants to see -- there's no real, compelling reason behind today's slump. The health care sector happened to be the second-worst performer in the stock market today, so Boston Scientific was already fighting an uphill battle Monday, but its long-term prospects aren't quite as dire. The company acquired Bayer's interventional division for $415 million last month, which should create operational synergies and complement its own interventional division ("interventional" products treat blood flow issues).

Invest in the next wave of health care innovation
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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 and owns shares of Gilead Sciences and Wells Fargo and has options on Wells Fargo. Try any of our Foolish newsletter services free for 30 days. 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.

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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