Tuesday, December 05, 2006

Stock Fusion and Fission

Today, First Marblehead (FMD) began trading at prices reflecting its 3 for 2 split. Just for the record, cost basis in this LT Portfolio position has been adjusted to 18.67. And, as an added bonus FMD is trading at a new high following the release of their expected revenue numbers from the securitization deal with the National Collegiate Student Loan Trust.

Yesterday, it was confirmed that all of the North Fork Bancorp shares were converted to Capital One (COF) as per my 100% stock election. The COF position roughly doubled in size as a result of this conversion, and effective cost basis for the position now sits at 38.61.

After some thought and digging, I think I'm going to be adding to my Amgen (AMGN) position. Their drug pipeline is pretty strong, and I want more exposure to biotech. I guess this means that I will probably be taking a pass on Genentech (DNA) after getting close to buying shares recently on a number of occasions. I might add shares as early as today, seeing as how it is currently under pressure.

*** Edit #1 ***

Order was filled to buy Amgen (AMGN) at 68.89. The LT Portfolio position has been increased by 50%, and the average cost basis for the shares is now 62.57.

*** End Edit #1 ***

As for Pfizer (PFE)... I'd stay away. That drug halt effectively killed off their pipeline. So what's more interesting is to try and figure out what companies it will buy. Its hand is now forced, and the company has no choice but to sustain its growth through key acquisitions.

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