1. TMO is one of my largest positions.
2. You can get "concentration" by buying some of its spinoffs - but have a care!! Not all of these individual spinoffs do so well (i.e., Thermo Cardiosystems was one of PBHG's biggest losers last year).
3. TMO is not suitable for most people who post on SI as it's not as much of a "trading buy" as hotshots ASND, ALTR, CSCO, etc. etc. But nothing in the world looks prettier than a 5-year TMO chart. There was a general selloff over the last couple of months, due mostly I think to people not doing their homework. Basically, TMO did a transaction which was 1-Q dilutive to EPS (increased shares), so they showed EPS growth in the 20%'s, lower than historical avg. However, net income for last Q was up more than 30%. Going forward they should maintain their historic revenue/net income growth, so I think TMO will outperform next year.
4. FYI, owning TMO itself is weighted towards owning Thermo Instrument (TMI, AMEX), which is biggest-cap spinoff and TMO maintains a large position. TMO price will tend to follow TMI price moves fairly closely. |
