July 9, 2009

We aggressively sold short $AMGN yesterday at $60.80 as per our plan in the earlier post. We take no issue with the positive trial results. Our issue is with the earning estimates of the street. Majority of $AMGN earnings come from anemia drugs. We continue to believe that these earnings will shrink at a more rapid pace than the new earnings from new drugs. We will maintain our short position on $AMGN.

Because of street’s enthusiasm for the stock, we will manage the trade by scaling out on dips and scaling in on spikes up.