Novo-Nordisk (NVO)

Probably one of the world’s largest oil field service companies. Involved in manufacturing of equipment. Big builder of drilling rigs for the drilling companies. Very diversified in a lot of different markets. This is actually a great long-term play on the growth of the energy industry. If you don’t own, wait for a bit of a back off before stepping in.

Lost an Express Scripts (ESRX-Q) contract for its synthetic insulin medicine because of price. Although that is a headwind, it is not material. Has a very broad base of profits and sells its products throughout North America and Europe. Also likes that manufacturing insulin is almost a craft, which means it is much more resistance to generics in the long-term. Not necessarily cheap at about 20X trailing earnings, but it’s a business that has pretty strong visibility into decent high single digit top line growth and much better operating profit growth for the next few years. Have done a great job of returning cash to shareholders through buybacks and dividend increases.

Largest manufacturer of insulin globally and has been taking share from Eli Lilly (LLY-N) for years. Stock sold off because it had problems getting FDA approval for a new type of diabetes drug that has been approved in Europe and Japan.