Amgen’s Blowout

Powerful Numbers in Recessionary Times

By Bryan Bottarelli
Thursday, October 23, 2008 9:41 AM EDT
Thu, 23 Oct 2008 13:41:00 GMT

Dear Bottarelli Research Member,

Good news! Amgen (AMGN – NASDAQ) reported “staggeringly higher” third-quarter earnings, which included a net income of $1.16 billion ($1.09 a share) versus $201 million ($0.18 a share) during the same quarter last year. Sales rose 7% to $3.78 billion, which promoted Amgen to raise its 2008 revenue estimates between $14.9 and $15.2 billion, citing "sales momentum and lower operating expense due to continuing efficiencies." In a market environment like this, these are truly powerful numbers.

AMGN

As I mentioned when we entered this play, Amgen should call the 200-day moving average a support level, and today’s earnings report really supports that viewpoint. As I write, shares of Amgen are up 7% (which is not yet reflected in the chat above) but I think they could push even higher. The AMGN November 50 Calls (AMQ KJ) that we entered for $4.80 have traded as high as $5.50 today, good for a modest 15% gainer. Let’s hold for more upside.

At the same time, shares of WFT continue to hammer out a bottom, so maintain your WFT November 15 Calls (WFT KC) as well.

I’ll be out with further updates as the day progresses. But until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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