Question: What does Bristol-Myers Squibb make besides drugs?
Answer: Bad investment decisions.
As you know, the drugmaker took a $275 million write-off to reflect a sharp drop in the value of debt-related investments, including residential and commercial loans linked to sub-prime mortgages.
"Investors can now add to the list of questions to ask a pharmaceutical company in addition to asking about the studies and pipelines and patent expirations: What is your sub-prime exposure?" Carol Levenson, director of research at Gimme Credit, wrote in a note to clients. The write-down "speaks poorly for the company's stewardship of its cash." And she predicts more to come.
Source: The Los Angeles Times
Hat tip to Pharmagossip