OptionsHouse

Options Trading News

October 2, 2013  Wed 8:11 AM CT

CELG: SEE CHART GET CHAIN FIND STRATEGIES
Celgene and Merck are crosstown rivals. One's always innovating, putting money to work in a variety of biotechs, buying when the time is right. It's always going for the blockbuster, trying to press, press, press.

The other is trying to cut its way to success by firing, trimming, and hoping to eke out money as its new products fail to ignite or just fail. It's unoriginal and staid--just trying to pay that dividend.

The first is obviously Celgene, and the second is Merck, which managed to pop its stock with an announcement that is laying off a bunch of people. It's a second reduction in force for this obviously bloated company.

TheStreet.com logoBut the first used to be Merck. It used to be the ultimate in original thinking and new products. Not anymore. Even its acquisition of the gigantic Schering-Plough in 2009 seems to have gotten it nothing significant that I can see. I had hoped that at least the company would follow in the footsteps of Pfizer and spin off animal health, but even that is apparently too radical.

Either way, I think that Merck's a sell, not a buy. The market wants growth and new drugs. If it wants yield, it can get it from Con Ed. Disappointing, again.

Disclosures:
Cramer's charitable trust has no positions in the stocks mentioned.
Share this article with your friends


Related Stories

CELG

Celgene draws vote of confidence

August 25, 2015

The drug developer hit an all-time high after reporting quarterly results on July 23 but has been pulling back since.

Invest Like a Monster - San Antonio: October 9-10

Premium Services

Archived Webinar

Education & Strategy

Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

View more education articles »