Trade Merck - in 20 days

Why I bought?

It dropped 10% on 30Apr as FDA rejected one of its cholesterol control drugs, this is not a big issue as Merck so many other best selling drugs in the market. I am taking a ride of the recent roller coaster in stock market. Another reason: I am also practicing “Buy the good stocks when most people are selling.”

Why I sold?

Markets worldwide can still feel the aftermath of sub-prime crisis, crude oil price is not giving up the strong uptrend, inflation worries are getting worse. Even though holding Merck for long will return me with higher return, however I do see further downside of this stock, even though pharma stocks are usually viewed as “defensive stocks”, which will not have dramatic ups and downs. I love pharma stocks, am also keeping an eye on Schering Plough (NYSE SGP) and Pfizer (NYSE PFE).