Bristol-Myers Squibb (NYSE:BMY) surprised investors with more disappointing Opdivo related news on Thursday after the bell which sent the stock plummeting more than 11% on Friday. The company announced that it "has decided not to pursue an accelerated regulatory pathway for the combination of Opdivo plus Yervoy in first-line lung cancer in the U.S. based on a review of data available at this time." It was news of Merck's (NYSE:MRK) Keytruda being given first-line status for non small cell lung cancer treatment that inspired much of the weakness that BMY experienced during the second half of 2016 when shares traded down from $75 to $50. During this sell-off, I made several purchases on the way down, at $63.45, $60.02, $55.86, and $50.06. For a while I was worried that I was attempting to catch a falling knife. Then, sentiment changed and BMY shares traded back up to the $60 level. My stake turned positive, and I began to think that I was a pretty smart guy. Well, I held onto all of those shares looking forward to years of growth and strong dividends, and then today's negative Opdivo related news happened and now I'm back in the red. Feeling slightly less-smart, I did what any disciplined value investor would do (or, at least I hope I did), I bought more shares for $49.29, lowing my cost average to $55.61 and increasing my yield on cost to 2.8%.
