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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (42157)	4/5/2011 8:56:06 PM
From: $John	Respond to of 78690

I agree completely. When I first wrote about the company, I noticed the fundamentals were strong...key basic metrics looked attractive for instance: P/E: 7.8 (lowest in the industry of major pharm.) P/B: 3.26 ROE: 40.8% (one of the highest in the industry) ROA: 16.4% FCFPS: $2.51 I was too hesitant to actually invest because of what you talked about...seems like pharm in general is too volatile and complex.

To: Paul Senior who wrote (42157)	4/6/2011 11:44:56 AM
From: Grantcw	Respond to of 78690

Hello Paul, And the issue of patent expiration for Eli Lilly and other large companies in the space is leading me to analyze any small company with an fda approval in the past year or two. My goal is to find small companies that should hopefully do well with or without an acquisiton from a large company like Eli Lilly. But, I think the economy of scale possibilities would make acquisitions very likely in the coming couple of years (but everyone has been saying this...). That being said, I've only found two that I've invested in at this point and I still haven't found any that are worth of discussion on the value thread, as they are much more of growth stocks. But, still an interesting space... Thanks, Grant

To: Paul Senior who wrote (42157)	5/12/2011 3:38:43 PM
From: E_K_S	Read Replies (1) \| Respond to of 78690

Hi Paul - My Drugs watch list has been moving higher the last 14 days w/ all hitting 52wk highs. In particular, LLY my long term "Value" play w/ buys in 8/2009 & 4/2010 is finally moving close to $40.00/share. MRK is another big mover for me w/ buys in 10/08, 11/08. & 6/09 may be a $40 candidate soon too. finance.yahoo.com What's your take on the Drug companies in general and are there any on this list you see as possible sell candidates. Both Covidien plc (COV) and Becton, Dickinson and Company C(NYSE: BDX) have been discussed as undervalued medical devise companies. These too are trading at or near their 52wk highs. finance.yahoo.com At 16 PE these companies might be considered near a fair value level but their forward PE's are lower around 13. IMO these are still holds and to me continue to be undervalued. In both the Drug stocks & Medical equipment companies we are having a stealth rally. EKS