Adding to Amarin
“The secret to investing is to figure out the value of something – and then pay a lot less.”
- Joel Greenblatt
The Portfolio
The portfolio is up over +5.00% so far this year
Our benchmark index, the S&P 500 is up about +2.22% YTD.
If you're interested in the stock market, are looking for diversification or growth please feel free to connect me. I'm always available to talk, maybe provide some new ideas or to present to your group. clay@claybaker.com
Adding to Amarin
We began with 100 shares of Amarin, today I'm adding 400 shares at $18.55. After todays purchase our cost basis has been lowered to $18.80. I have been waiting to buy AMRN around $18.50 and this morning the price got close. While everything is in rally mode today, AMRN was looking like a great value.
Amarin has a market cap of $6.78 billion with little more than $400 million in revenues. Our investment in AMRN is focused on some catalyst events this year, but my thinking is that we'll hold this stock for several more years or until Amarin is bought out by a larger company. I never buy a companies stock on the premise that an acquisition may happen, but in the case of Amarin, the only way their drug VASCEPA can reach its full potential is through a licensing deal or a buy out by a larger pharmaceutical company that has the sales force, payer relationships and cash for sales and marketing.
Amarin developed VASCEPA for cardiovascular disease patients who have high triglyceride levels, 550 and up. Used in parallel with statins, VASCEPA has shown significant reduction in CV events, preventing second heart attacks. Recently the FDA approved a label expansion that will enable doctors to prescribe VASCEPA to patients with triglyceride levels that are greater than or equal to 150. This significantly expands the available market for VASCEPA, and more importantly, the number of people who will experience a first heart attack may be dramatically reduced. In addition VASCEPA is approved for patients with diabetes and two or more additional risk factors for cardiovascular disease.
Health Canada has acquired an exclusive license to distribute VASCEPA and has granted Amarin patents that protect the drug until 2039. VASCEPA is now approved in the United States, Canada, the United Arab Emirates and Lebanon. Amarin is seeking approvals in China, the European Union, the Middle East and North Africa.
Today's BUYs
Amarin (AMRN): Bought 400 shares @ $18.55
This is an existing holding.
"Markets don't go to zero, Portfolio's do.
Buy quality, be patient...and look twice for motorcycles."
- Clay Baker
Stay Invested,
Clay Baker
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Keep Me Honest 2019
S&P 500 declines to 2,350 or more (1-3-2019)
Healthcare and Biotech sectors outperform (1-3-2019)
S&P reaches 3,000 by year end (1-11-2019)
CSCO reaches $60/share (1-18-2019)
VEEV reaches $145/share (2-14-2019) (achieved $145.23 on 5-10-2019)
CVS reaches $91.50 (2-27-2019)
Bull market takes another leg up (4-7-2019)
The Fed will lower rates 1-2 times (5-13-2019)
Clay's Rules
Rule #1: Don't lose money
Rule #3: Portfolios go to zero, markets don't, Stay Invested
Rule #4: When a good stock you own drops 10% below your cost basis, add shares
Rule #5: Bull markets aren't sustained without the Transports
Rule #6: When Forward P/E is lower than TTM P/E, expect earnings to increase
Rule #7: When an investment bank sells below book value, buy it
Rule #8: Tips are for waiters. Do your own homework.
Rule #9: Don't sell a stock because you're bored with it. Do your own homework.
Disclosure: I am personally invested long in some or all of these stocks or funds that appear in the Stay Invested portfolio and may purchase or sell shares within the next 72 hours. I am also invested in other stocks and funds that do not appear in the Stay Invested portfolio but may be mentioned or related to this article. It is not my intention to advise or encourage the purchase or sale of any security. I am invested long in these securities mentioned in this post:
HD, AMRN, BSTC, CVS, CSCO, VEEV, STZ, AMZN, NVDA, BCRX, GS, BDSI, VEEV, VTI, GLD, HD, AWR, XLNX, MRVL, NBRV
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. This article is not intended to offer investing advice, guarantee 100% accurate predictions, or to be interpreted as providing a personal recommendation.
