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☕ If you like dividends, Amgen’s new FDA approved cancer treatment is a game changer

May 17, 2024

Good morning! 👋

The markets are little changed as we come into the final trading day of the week.

Many are tempted to sound “call clear” because recent trading action has been so positive and strong.

Don’t make that mistake.

Stay focused.

The markets are gathering strength for another run higher and, as always, the key to harnessing the next big move is owning the right companies before that happens.

There’s a lot of action in healthcare stocks lately, for example.

Quite a few of the great names have been beaten down to bargain basement levels this year with AI dominating the imagination.

That’s not happenstance.

Wall Street has spent billions of dollars learning how to push your buttons so, like a street hustler playing 3 Card Monte, they want you to focus on one card while hiding the money makers.

Remember, you make your money in bear markets but it’s often not clear until prices press higher.

Here’s my playbook.

1 – Durango Airlines

A quick thanks to everyone for your support after this week’s unanticipated visit from “Durango Airlines.” The pilot presumably enjoyed a night at the gray bar hotel courtesy of local law enforcement while the passenger was released after a bumpy landing.

Again, as unpleasant as all of this was and as much cleanup is yet to come, we’re all still breathing and that’s a great thing!

2 – CoreWeave: more proof we’re on the right track

CoreWeave is backed by Nvidia and investors like Blackstone which, btw, just led a $7.5 billion debt round.

Understandable.

Microsoft, Amazon, and Google are all apparently using CoreWeave’s AI infrastructure products for computing power. (Read)

If you are not yet investing in AI or even because of AI, you ought to take a hard look in the mirror and ask the person looking back at you why not.

Just sayin.’

I’ll be here if you’d like some help.

3 – Amgen’s new FDA approved cancer treatment is a game changer

Just 3% of patients with small cell lung cancer that has spread into other parts of the body live 5+ years. Usually, the life expectancy is just 4~5 months after diagnosis.

Amgen’s new FDA approved drug could be a game changer. (Read)

Roughly 2.2 million people are diagnosed with lung cancer worldwide every year of which 330K are small cell lung cancers. So, as callous as this is going to sound, the market is pretty small.

That said, Amgen’s new drug is what's called a T–cell engager, which is designed to redirect the body’s immune system, T cells, to recognize and kill cancer cells.

It’s yet another important step towards customizable medicine.

AI will accelerate new development, especially where T-cells are concerned.

Dividend investors undoubtedly find that interesting.

A quick look shows that Amgen has logged 11 consecutive years of dividend increases, and the 10yr annualized dividend growth rate is 15.64% as of the last FQ.

Keith’s Investing Tip: Many investors fawn over the latest and greatest tech stocks but the real secret to success is owning a blend of choices that can help you balance raw growth with cold hard cash over time, not just result in big winners at moments in time.

4 – GameStop Q1 sales drop, no surprise

Shares were down another 20% premarket after the company announced preliminary results that showed a drop in Q1 sales. (Read)

Like that’s a surprise!?!?

I sure as heck hope you haven’t gotten anywhere near the situation. I can imagine $10 a share a year from now without much effort.

Long dated putskies, short or avoid.

5 – I love it when a plan comes together

There’s nothing that puts a bigger smile on my face than hearing from 5 with Fitzers who have made hay while the sun shines using trade ideas we discuss right here and entirely for free.

Take my recent comments on Walmart and the trade idea that went with ‘em, for example.

Jim M. took a moment ...”Hey Keith - yesterday, you had a quick trade suggestion in your 'Morning 5'. I have not acted on any of the previous trade recs, but I thought I would try the WMT straddle you suggested. The idea and timing seemed right, and besides - I need a new iPad. And the trade worked marvelously - just after the markets opened I closed the straddle for a ~60% gain (or about an iPad and a half!) I'm very grateful - thanks for this rec, and even more so for your always upbeat and on point attitude.”

Ray H. chimed in ... “Hi, Keith. Thanks for the mention re Walmart. I bought ATM strangles yesterday and cashed them out today at 95% profit.”

People somehow think investing isn’t for them or that “making money is something everybody else but me” does and nothing is farther from the truth.

You can do this!

Especially if you’re willing to put in even just a tiny bit of effort and go beyond the ticker-hunter mentality that seems to dominate today’s thinking.

That’s the stuff nobody talks about, right.

You can make a change for one of two reasons.

First, you can decide that you want to master your money. Then, go do it.

Or second, you can do it because you’ve reached a decision point when you know you’ve got to do something but are unsure what. You’re standing on a threshold, and you've got to break through the fear and uncertainty that paralyzes most investors.

So if you’re ready and willing to make a change by doing something different, this is the opportunity to do that.

A huge tip o’the hat to you both.

Well done! 😊

If you missed this one, have no fear. One of the really cool things about investing or trading is that the markets will always be there tomorrow and there’s always something to learn that’ll help you up your game, achieve better results and yes, have one heckuva lot of fun, too.