Happy To Have Sold 'Value Trap' Amgen

I have owned Amgen (AMGN) since the early 1990s. I thought this new (at the time) biotech industry had good growth potential and decided to buy the biggest company at the time. I have held the shares through thick and thin but when some commentary begin suggesting that AMGN's business model was beginning to look just like that of the big traditional pharma names, I began to get worried. Yet, the valuation still looked very attractive and I persisted in my bullish stance. Turned out to be a value trap.

With last week's announcement that company was laying off workers and canceling some capital projects I realize the story has changed. I also realize that I do not understand the company as well as I would like to. I may revisit the name at sometime in the future (and I realize that I am selling at a five-year low -- something I am loath to do), but for now I am happy to be out of the name.

AMGN 5-yr chart:

Comments

[jturano7423]

Dear Mike Goodson, I commend you for stating what you did and to make a new stance although you loved the stock. It's not easy when you own a company like amgn and feel your in the right stock with all its potential
besides. As you said it was a value trap and just looking at that 5 year chart I can fully understand.
Which brings me to 'nstk' with a similar chart for 5 years(about the same value consistently), except this is not a stock of the same level. But when recent statements that nastech has potential in three areas being, Autism, Obesity, and Rnai, it raised a red flag to me. I found other companies way ahead of 'nstk' in all three areas, so
maybe it's more Hype than reality. There ahead by years and later phases too. nstk is in the early stages so they are probably 5-15 years away, which makes me wonder as a shareholder that maybe this is a 'Value Trap' too.
What's your perspective Mike,
Jimmy T