Thermo Fisher Scientific (TMO)

A strong player in scientific equipment that they sell to corporates and universities. They've done a fine job buying and integrating companies. Overall, they've done a great job. Expect more spending in new medicine and treatments as the population ages, a tailwind for them. They're a little expensive though, so keep an eye on their earnings.

A terrific business providing lab supplies to everyone from government labs to university research labs. A leader in this space. Generates cash. A slight tailwind with Amazon threatening to enter this space, but this threat has receeded a little. TMO is expensive relative to its growth which gives him pause.

This is a life sciences sector company. Well known company and the chart looks fantastic. The valuation is fair. The only knock is that he would prefer the diversification of an ETF in this space. There is not much yield.

(A Past Pick Nov 14/16. Up 32%.) Earnings were just out, and the market liked it. Because of where the market is and where the stock is trading, if you are interested in buying, do half now and the other half later.

Chart shows that for the last 3 years, it has gone up and to the right despite some volatility. If you like the name, you just have to simply buy it. Maybe take half a position and not even worry about it, and then look for an opportunity to buy the 2^nd half.

This had a good earnings beat and the stock did extremely well. He would suggest there is a little froth in it at the moment, but doesn’t think it is terribly valued. Any time anything has really shot up like this, it has to consolidate. If the earnings can catch up a little, with the valuation, it is probably approaching 20X PE. Good growth and good company, but is a little ahead of itself. He would give it a little room to consolidate.

(Top Pick Nov 14/16, Up 17.89%) They just bought Patheon. There is no end in sight as to the kind of acquisitions they can do.

Life sciences is the big theme here. There has been a lot of consolidation in the industry. They acquired FEI Corp, which was in electron microscopes and major mass spectrometry. This has analysis, chemical analysis so that you can do DNA testing. They have so many ins around the world, so it is really their offshore business outside of the US that is driving the growth forward. Dividend yield of 0.41%.

Other than being in healthcare, this is an outstanding company. Has held this in the past, and is looking to get into it again. This is more medical devices than drugs, etc. This is one of his top picks in that space.

(A Top Pick June 20/13. Up 47.16%.) Saw a transformational acquisition, when they decided to purchase Life Technologies. It really expanded their network, and gave them the ability to cross sell their products in new markets. Even though it is still early days for them to realize the synergies, there could be earnings north of $7 a share going forward. Paying down their debt, but also streamlining the business by selling one of their lab equipment and supply companies.

(A Top Pick June 20/13. Up 51.79%.) One of the largest lab equipment/healthcare research companies. Their biggest catalyst was the acquisition of Life Technologies, which is basically a game changer for them. It helped them realize synergies between their long withstanding cell reagent business and Life Technologies’ e-commerce network.

Just recently acquired in life technologies. Advantages for growth in emerging markets. Air and water quality testing and Narcotics detection. Pretty good prospects $7 per share earnings ahead. 0.7% yield. Anticipates increase going forward. Will pay down debt aggressively and then increase dividend.