The Value of Keeping a Well Stocked Bullpen; Amgen You’re In

A bullpen full of quality relievers is critical at a certain point in a ballgame.  That is how I think of my watch list, which includes items I’ve already sold.  Take Amgen for instance; I told myself “don’t be greedy” and sold it at around 172, several weeks ago about 10 bucks above my original target.  I said ‘thank you fine company’ and moved on.  Except that there AMGN sat in its alphabetical order in my watch list, just below AAPL, AAU and AEM, where I saw it getting hammered today.

AMGN is getting croaked because its new Cholesterol drug appears to work, but not well enough to justify its cost to insurers, among others.  That’s the short story.  It is not good news but this is a solid all around company and they say buy good companies on days like this, so I did, starting a position on the drop to the SMA 50.  It’ll probably go lower and I’ll plan to add at the SMA 200 if I am in a stock buying (or even holding) mood at such time.  Risk is riding hand in hand with a bullish market stance*, after all.

amgn

* Which is still my stance, per the market’s instructions this week.  Risk is being mitigated by a profit-taking, loss-limiting regimen and ongoing rebalancing into favored areas per yesterday’s post (along with cash, T-bonds and a couple shorts).

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