Danaher Corp. (DHR)

He exited. Mea culpa. Put proceeds into TMO. R&D spending hasn't been as strong as hoped. M&A track record not as strong as before.

Owns, but he's selling out of it for an opportunity in TMO. TMO can control more things in its wheelhouse, whereas DHR has to do deals to fill out its portfolio. Both names have been selling off at the same rate in the past 2 months.

It reports Wednesday. After a dry spell, DHR has big orders from biotech. They have beaten results, but next week could be the biggest quarter in years.

It's been frustrating the past few years, but is up 31% since its April lows. They last reported solid numbers backed by growth in their crucial bio-processing division which had been languishing. They beat and bottom lines and reiterated guidance. Their best growth in years is expected in 2026. He will trim if this jumps 10 points.

Caught up in the "tariff war". Healthcare behemoth. Very good track record with its acquisition strategy. Lots of firepower. Should be part of the workaround solution for non-American companies. Inexpensive, great entry level. Likes healthcare. Yield is 0.60%.

A disappointment for him. It needs to show it can capitalize on all the new drug companies coming public now, or this will slide back to $180s.

Loves it. Within tools diagnostics, they boast high growth among its peers. They make the equipment that produces biological drugs. Are exposed to the R&D space, which is seeing less funding due to Washington. The stock took a hit after the Waters-Becton deal, fearing more competition. 80% of revenue is recurring. Medium/long-term this remains a good business. There is a lot of policy noise on pharma, though, from Trump. This and this space needs to see some catalysts, perhaps in the fall, when we see hard numbers on the impact of Washington.

Not much of a dividend. Challenges with global revenues. Beat revenue by 3.5%, but bottom line fell 39%. Underperforming both the sector and the S&P 500. Healthcare sector is super-undervalued, and that could change.

Can trade successfully if you watch technicals closely. Rarely meets analysts' expectations. Don't get greedy; when it hits $220, keep an eye on changing momentum.

He never sold it. Is sticking by it. Expects a comeback. Their China business isn't that bad.

Is horrified by it, a big disappointment. What is the CEO doing?

Since Covid hit, everything's slowed down. More pressure from the government. Long-term view is that its equipment will still need to be used to develop new drugs. Products needed by universities, governments, hospitals, biotech. Just have to wait for demand to pick up. Lots of opportunity for sales growth, just not at the same pace as before Covid. A buying opportunity.

Diversified diagnostics and bio-processing franchise. Good capital allocators. On the upswing in terms of cyclicality. Under-deployed balance sheet can be utilized accretively. Until recently, valuation was coming down. Defensive healthcare, a more resilient vertical than industrials. More complex treatments of the future benefit a name like this (and TMO). Yield is 0.64%.

The CEO is not doing an appropriate job. He wishes he didn't own this. Wants to see the board act.

Expensive at 28x PE with tepid revenue growth. They're talking cost cutting, which is encouraging for profits, but it's making up for fundamental weakness.

Likes it and they have performed well in the past, but as of late DHR has seriously underperformed. He's getting restless.