Tuesday, July 21, 2009

The Flyers method - mucking and grinding and fighting for gains



Like Dave Schultz and Bobby Clarke of the Philadelphia Flyers sometimes you just need to dump the puck in and then work hard, work hard to make something happen.

I dumped in today and sold some shares of good companies with good balance sheets that had 18-20 % gains , (GRMN) Garmin and (ADM) ArcherDanielsMidland. Sometimes, just like in hockey , you need to take shorter shifts, to get all four lines on the ice and keep everyone fresh. It just seemed like both issues were fully valued here.

I picked up some value stocks to plug in with defensive positions. I am not as bullish here as most of the soothsayers. I do not see a fast recovery at all. (BMY )Bristol Myers Squibb has a 6.2 % dividend yield, so you get paid to wait for a stock gain. They are also in a product partnership with Gilead Sciences , (GILD).

Foster Wheeler AG, (FWLT), a play on rebuilding infrastructure in heavy construction and engineeering. Both stocks are value plays that are lower beta volitility than Garmin and ADM. We'll see if we can get a quick goal here if the puck bounces right! These activities are in an IRA retirement account, so are a little bit more conservative picks.


Thanks,


freewilly



1 comment:

  1. Some quick add-on news to my trade on Bristol-Myers......... the next day

    Jul 22, 2009, 7:54 p.m. EST

    Bristol-Myers to buy Medarex for $16 a share cash
    Deal values Medarex at almost double its Wednesday close.
    Medarex's projected $300 million in net cash and marketable securities at the close of the deal would knock the final price down to $2.1 billion.

    Among the properties acquired in the merger is ipilimumab, a novel immunotherapy currently in Phase III development for the treatment of metastatic melanoma, which Bristol-Myers said could be "an important contributor to [its] future growth."

    "Medarex's technology platform, people and pipeline provide a strong complement to our company's biologics strategy," Bristol-Myers Chairman and Chief Executive James Cornelius said in a statement. "This acquisition is another important step in our BioPharma transformation."

    The tender for the shares will begin on or about July 27, with the deal expected to close 30 days later, pending regulatory approval.

    Shares of Bristol-Myers /quotes/comstock/13*!bmy/quotes/nls/bmy (BMY 20.59, +0.30, +1.48%) closed up 0.9% at $20.29 Wednesday, while those of Medarex /quotes/comstock/15*!medx/quotes/nls/medx (MEDX 15.95, +7.55, +89.88%) were up 1.45% at $8.40.

    The announcement came one day before Bristol-Myers was slated to announce its financial results for the second quarter. The company is projected to post earnings of 47 cents a share.

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