Bristol Myers Squibb (BMY): We Bought It In the Hedgeye Portfolio Yesterday

On its lows yesterday morning, my Partner, Tom Tobin, thought BMY was oversold relative to the impact of the news (see his portal posting on it this morning).

This is one of these "Large Marge" big cap pharma names that fits within the construct of our Healthcare Sector and Global Macro views, and buying things when they are on sale is what we do.

Intraday here, "DealReporter" was cited by FT mergerarket today citing "industry sources following the situation" that BMY could offer as much as $70/share for IMCL. This is not edge; this has been a price that has been thrown around for some time now.

What has not been thrown around is that I think Carl Icahn is as incentivized as he will ever be to get his IMCL trade booked. For the levered activists facing potential liquidity problems, this is a time to sell what you can, not what you should.

We like the Bristol/Imclone combo. The sooner this deal gets done, even if it's for $70/share, the better for BMY.
KM