Article Thesis
Gilead Sciences (GILD) has a history of large takeovers, some of them more successful than others. The company has now decided to acquired Immunomedics (IMMU) for $21 billion. At first sight, this deal seems quite expensive, but maybe investors should put some trust in the company and its strategy here.
Gilead Sciences has some other things working in its favor as well, is trading at an inexpensive valuation, and offers an above-average income yield on top of that.
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Buying low is what Buffett and other value investors