Stockchase Opinions

Bruce Cooper Koninklijke Philips Electronics PHG-N BUY Jul 29, 2008

Have been going through a slow motion restructuring over the last 5 years, which has been the right thing to do. Balance sheet is in great shape. Expected to buy back about 10% of their shares this year.
$33.590

Stock price when the opinion was issued

misc consumer products
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HOLD
No, it's not a European version of GE. Rather, PHG has done well, but their sleep apnea machine has gone into recall and attracted lawsuits. This is weighing on the stock, though long-term this is a good investment. Still happy to own it. But who knows how this or any lawsuit will end, and the overhang will continue over this stock.
DON'T BUY
Fairly significant decline, but hasn't floored yet. There's never just one cockroach. Interesting franchise at the right price. Need some kind of catalyst before he'd get excited. Stay away for now.
BUY
Hospital equipment supplier. Recall on certain products has caused lawsuits. Sees value with recent selloff of shares. Good time to buy shares.
DON'T BUY
It's isn't run well. Prefers Danaher.
WEAK BUY
It is on sale since there is a lawsuit regarding the CPAP machines which have been recalled. However the rest of the business is doing well. The risk is what the cost will be coming out of the lawsuit, but the risk/reward is OK. Buy for the longer term.
DON'T BUY

Difficult time. Hasn't rationalized their business the way Siemens has. Needs to look at cost of capital of all businesses and get rid of non-core ones. No need to own. Instead, look at Siemens or US industrials.

BUY ON WEAKNESS

Quality franchise.
Buy when share price low.
Believes better names to invest in.

SELL

Lawsuits are behind them. Stock's rallied off lows, still a long way to go. Struggling in a number of its core businesses. Lots of competition, softer margins. Other places to go. Still in turnaround mode.

SELL

He sold. Problems with CPAP machines, have since been settled. Slow growth, struggling on a number of fronts. Still in restructuring mode. Look elsewhere.

DON'T BUY

Medical equipment. In trouble years ago with large sleep apnea settlement. Struggling since then. With everything down, better places to look.