For the second time in three months, I've selected a pharma stock...sort of.
PDL BioPharma, Inc. (PDLI) is somewhat similar to last month's pick, Cherokee, in that it manages a portfolio of licenses, patents and royalties. Its biggest sources of income are from Avastin (cancer), Tysabri (multiple sclerosis), and Synagis (respiratory virus). PDL does not manufacture or market these drugs, nor will it be investing in the development of new drugs, leading to steady cash flows and outstanding margins - and the ability to fund a 12% dividend.
Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.
Southern Copper (PCU) 10.80%
Apple (AAPL) 9.19%
Dominion Resources Black Warrior Trust (DOM) 9.18%
Google (GOOG) 9.07%
Terra Nitrogen (TNH) 8.96%
Tesoro (TSO) 7.63%
Frontline (FRO) 5.95%
Ace Limited (ACE) 5.90%
The Distressed (AIG, BX, C, F, FNM, GM, JSDA, MOT, WFC, YRCW) 4.94%
American Software 4.87%
Atlas Energy Resources (ATN) 4.69%
Tidewater (TDW) 4.28%
Biovail (BVF) 3.60%
PDL BioPharma (PDLI) 3.50%
Cherokee (CHKE) 3.41%
Apache (APA) 3.12%
