I added to my position in Amgen Inc (AMGN – $64.59 ) today at $64.68.
On a forward (2008) basis, the current price of around $64.50 is an earnings multiple of just over 14. Every person I see over fifty taking a handful of prescription medicine reminds me of how many of these things the baby-boomers will need. Amgen Inc is in a growth industry. If I can pick up this company at only 14 times forward earnings I'll do it. The stock has been falling all year: maybe it's fear that Democrats will have the U.S. join the club of countries that regulate drug prices, maybe its the shift away from large cap biotech to smaller cap biotech. I still have to figure this out. But in the meantime, if I see something that doesn't make sense that I can't explain and it means I can pick up a stock on the cheap, I will. But I'm also going to continue to watch the news on this one.
Disclosures and Confessions: I own Amgen (AMGN). I bought some Amgen in December as part of my 2006 year end trades. I bought some today. I discovered Amgen's value while reading ValueLine at Grandma's house. Grandma did not yet buy Amgen with me.
Disclaimer: Nothing in this trade log is meant to be specific financial advice or a recommendation to buy or sell. I do not give investment advice. Do your own research. Do not rely on anything in this weblog to make investment decisions. I do not log all my trades here. I only describe or mention those that I think might be interesting. Consult an investment professional familiar with your specific financial situation before buying or selling any security. Options may be for me but they are are not for everyone.