Malvin SpoonerAxcan PharmaceuticalsAXP.TODON'T BUYJan 31, 2002

Part pharmaceutical and part drug development. Very profitable. Strong balance sheet and lots of cash flow. Generates about US$1.50 free cash flow every year. In a very stable gastro-intestinal market. They're also in-licence some drugs which gives them some pretty good upside. Trading at about US$14 with $1 a share free cash on the balance sheet.

A very focused (gastro intestinal) pharmaceutical company and as a result, it is very profitable. You pretty well get a free call option on a potentially block-buster drug called Itax. Huge market in North America.

Last news was that R&D spending would be higher than the street anticipated. Launching a product that could be a $200 million product.

Has a very good ROE. Efficient balance sheet structure. Continuing to grow their earnings. Valuation is reasonable.

The entire US financial sector is attractive. Their brokerage sector is growing rapidly. Expects travel business will pick up.

Its OK earnings wise. They are trying to make a hostile take over which looks expensive. Core business is OK.

A good long term hold. They focus on their earnings. Well managed.

Products selling very well. Sales force based in US