Lagging Value

Then you say
'Go slow'
I fall behind
The second hand unwinds
--Cyndi Lauper

In trending markets like this one, finding value is difficult. However, there's usually a name or two on an investor's watchlist that has been lagging. Sometimes for good reason. But often for trivial reasons.

On my watchlist, Merck (MRK) fits this profile. The company just spun off some over the counter assets which subtracts from its market cap a bit. Plus, investors seem constantly worried about the staying power of its blockbuster oncology drug Keytruda.

The spinoff means that the remain Merck is more focused on high impact medicines. Very much inline with the company's historical mission.

Short term chart show the stock as oversold and on support.

Longer term chart suggests a rounding top pattern (bearish), but with a couple layers of support below.

As a long term investor, I've always liked this stock as an anchor position. The stock currently yields 3.6% to boot. Have been adding here and there.

position in MRK