Per Dan Loeb and his Third Point hedge fund's 3Q letter, he closed out his Sony (SNE) position, which was disheartening for us (SNE is undervalued, but the company is stubborn and needs a catalyst), but Loeb is taking on a new company, Amgen (AMGN).
Shares are already up 29% YTD, but Loeb believes the fair value is $249 -- which is 70% higher than where it currently trades. Loeb pitched AMGN at the Robin Hood conference and owns 450,000 shares (or less than 1%).
In his letter, Loeb calls AMGN a hidden value play. He commends AMGN's new products and the under appreciation of them. Loeb also calls for AMGN to split into two companies.
What's AMGN do? "Amgen Inc. is a global biotechnology pioneer that discovers, develops, manufactures and delivers human therapeutics. Its medicines help millions of patients in the fight against cancer, kidney disease, rheumatoid arthritis (RA), bone disease, and other serious illnesses."