| DON'T BUY | | Lyondell Chemical Co. | LYO-N | 26.600 | Did well and then came off like a lot of the commodity/chemical companies. On these cyclicals, it's the price of the commodities. In this case, the cycle is getting fairly extended. | 2005-07-06 | |
| TOP PICK | | International Rectifier Corp | IRF-N | 49.120 | A semi-conductor company. In a transition phase. Used to make mostly commodity products but is now going proprietary which are all about power management in PC's, home appliances, flourescent lighting, etc. Looking to increase margins to 50% and the market hasn't accepted this yet. | 2005-07-06 | |
| DON'T BUY | | Devon Energy Corp | DVN-N | 53.150 | Doesn't follow this one closey, but feels they have done a pretty good job. Have taken their resource exposure, including energy, down. | 2005-07-06 | |
| TOP PICK | | Edwards Lifesciences Corp | EW-N | 42.230 | Primarily involved in cardiovascular products. Half the business is in heart valve therapy with about 45% of market share. Have some new products that could create new markets for them and this hasn't been priced into the stock. | 2005-07-06 | |
| DON'T BUY | | Pfizer Inc | PFE-N | 26.770 | The whole area has been beaten up and is very interesting. The big pharmas have a big challenge as the pipelines are a little bit bare. Would rather own companies that are suppliers to the pharmas, such as IMS Health (RX-N). (He doesn't follow big caps.) | 2005-07-06 | |
| DON'T BUY | | Oracle | ORCL-Q | 13.320 | Multiple is pretty reasonable. Making big acquisitions, probably because its organic growth is not what it once was. Prefers software that has organic growth such as business intelligence software such as Cognos (CSN-T). | 2005-07-06 | |
| TOP PICK | | IMS Health Inc | RX-N | 24.990 | It is a proprietary global database for things like where drugs are being sold, who's prescribing, for what conditions, etc. About 8 times as large as their nearest competitor. Have has problems with their Japanese information which is now being corrected and they are coming back into profitability. | 2005-07-06 | |
| BUY | | Biosite Inc. | BSTE-Q | 55.790 | Makes diagnostic tests. | 2005-07-06 | |
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