Consumer Staples/Disc, Healthcare

Consumer Disc and Staples Buy List
Company
BBI Rank
BBI BT
BBI PT 2010
$20
$24
Amazon (AMZN)
N/A
N/A
N/A
2
N/A
N/A

Healthcare Buy List
Company
BBI Rank
BBI BT
BBI PT
Covidien (COV)
2
$44
N/A
CVS (CVS)
2
N/A
N/A
Express Scripts (ESRX)
2
$90
$115
JNJ (JNJ)
1
$60
N/A
l
$43
$55
Teva Pharma (TEVA)
2
$45
N/A
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3 comments:

  1. CMG 2Q10

    DS notes: Take out shareholder equity trading 25x EPS . – growing 18% - 1,000 restaurants. McDonalds has 31,000 locations. Trading at P/S of 2.5x. v. MCD of 3.15x. MCD trades 5.42x. shareholder equity v. 6.24x. for CMG. Trade up food for poor, trade down for rich. Intriguing and seems to me the type of model restaurant chain that has far more saturation/ growth potential. Estimates EPS estimates should come up after this call. 2010 $5.59 EPS x. 22 = $1.23+ 24 shareholder equity. = $147 (they are doing $8.50+ in FCF and reinvesting in their biz.) --would add another 1/2 to HW under $130 or 18x.

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  2. Natura Cosmeticos 2Q10 - JPMorgan Note.

    http://dl.dropbox.com/u/7092909/Consumer%20Staples%20%26%20Discretion/Natura%20Cosmeticos/Natu3_7-21-10_2010.pdf

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  3. Life Technologies Corp. (LIFE.OQ),USD47.79 Hold Price Target USD54.5 Tgt $52.50 to $54.50. Solid organic Q highlighted by guidance incr; Reiterate Hold; PT up to $54.50 . Key takeaways from LIFE's 3Q earnings: 1) Organic growth of 6% driven by strength in Cell Systems, next-gen and CE sequencing, partly offset by weak PCR/molecular reagents (tough H1N1 comps). 2) EPS beat driven by OM expansion from synergies and minor tax benefit. 3) Raises and tightens FY10 EPS guidance to range of $3.48-$3.52. Despite the mid-single digit growth in EU, lingering concerns over academic budgets and government spending reductions over the cycle cause us to reiterate our Hold rating; PT up to $54.50.

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