Jennifer Radman Varian Medical Systems VAR-N PAST TOP PICK Apr 29, 2015

Medical imaging systems where it has the leading market share. Siemans (SI-N) dropped out of the business, which was 20% of the market, and this company has been asked to integrate Siemans’ operating systems into their own so that they can now manage the total package. Not only do they get the benefit of the demographic growth but also perhaps, cannibalize 20% of the market. He would be comfortable with $65 12 months out.

(Top Pick Aug 29/12, Up 23.25%) Foreign market is quite strong but US is seeing a shift into hospitals. The opportunity for them to move into new markets remains and so he would stay with them.

Radiation therapy equipment manufacturer and a global leader. Likes to find companies that are on the back burner of investors. US is seeing slower growth in this area. These are big-ticket items and hospitals are waiting to see how the whole healthcare space plays out. She sees very strong growth outside of the US. Also, in the US, the replacement cycle is coming up. Very high margins and high ROE and growth throughout the recession.

Cancer rates are expected to increase across the world as the population ages. The issue had been slow growth in the US, but she thought it was the shifting of the healthcare system. Last quarter we saw an uptick. They are also now selling their machines into developing markets. A lot of room for growth here.

She has seen some lackluster growth in this. Big ticket items. Well run company and some good products. Relative to a lot of other medical device companies it is compelling value.

Manufacture radiation therapy machines. One of the cheapest in healthcare equipment. Have been affected by the delays of big-ticket purchases. The trend for cancer is not going away, so the replacement equipment is needed both in the US and overseas.

(Top Pick Jan 10/14, Up 14.91%) Hospitals stepped back to see what the environment was like and now orders have picked up. It is one of the cheapest names still in the health care space.

(A Top Pick Aug 29/14. Up 2.34%.) Radiation therapy equipment for treating cancer. Have been affected a little by foreign exchange rates. These are big ticket purchases, so she expects purchases have been delayed, but she has seen this come back. On the emerging-market side, it is a little bit more challenging. Still thinks the trend for cancer radiation therapy is still alive and well.