Nice wedge pattern on this. Although it's been in a downtrend, it weathered the past week's volatility quite well, so my guess is sellers are exhausted here in the short-medium term.
This is a $75B global pharmaceutical company, makes a bunch of important drugs, that is trading at 12 P/E and pays 3.5% dividend.
They are acquiring Celgene (CELG), a similar company that trades at 13 P/E. At the deal's closing, holders of CELG stock will receive 1 BMY stock plus $50. An attractive way to play this would be to buy CELG stock, and get assigned BMY plus $50. That adds a bonus $2 per share on the deal's closing.
I had my eye on this but missed the chance to buy the dip. The chart of CELG has a nice looking gap fill:
This could be prove to be a long term entry area.
This is a $75B global pharmaceutical company, makes a bunch of important drugs, that is trading at 12 P/E and pays 3.5% dividend.
They are acquiring Celgene (CELG), a similar company that trades at 13 P/E. At the deal's closing, holders of CELG stock will receive 1 BMY stock plus $50. An attractive way to play this would be to buy CELG stock, and get assigned BMY plus $50. That adds a bonus $2 per share on the deal's closing.
I had my eye on this but missed the chance to buy the dip. The chart of CELG has a nice looking gap fill:
This could be prove to be a long term entry area.