investingfromtheright

I am retired and take educated guesses on all things financial.

October 02, 2006

October 3, 2006: Drugs SEEKING ALPHA

There are a few companies that may prosper even if a Democratic congress tries to legislate/litigate our world class pharma into oblivion. Here they are, based upon a benign tip or two from those in the industry and some research.WARNING: I do NOT own these companies, and consider them as somewhat speculative, but worth tracking for possible investment in a balanced portfolio.I am tracking these myself.Once the political air clears, I will probably make a move.

CMX. Caremark Rx, Inc. provides cost effective pharmacuetical services to PBM programs. It has taken some large accounts away from other pharma service companies recently, giving it even more leverage negotiating drug purchases. It also administors programs using a good core base of business-oriented leaders supplemented liberally by low-cost workers on and off site. It maintains seven automated mail service pharmacies and 21 regional mail service pharmacies. It is growing well and managing growth well. I discovered this company by using it myself. It is customer friendly, accurate (not like my former PBS pharma service) and efficient. Analysts like it.I don't think Democrat policy can mess it up. Trades at 55.03. www.caremark.com

FSH. Fisher Scientific International, Inc. provides products and services for global scientific research and US clinical laboratory markets. Their customer base is broad, reaching from biotech companies to universities to hospitals. It sells its products and services to customers located in approximately 150 countries. It has three divisions: scientific products and services, healthcare products and services, and laboratory workstations.If Democrats try to mess it up,FSH goes to the other 149 countries. Good growth stock.Trades at 77.64. www.fischerscientific.com

LH. Laboratory America Holdings Corporation in an independent clinical laboratory company featuring 36 primary laboratories and over 1,300 service sites consisting of branches, patient services and STAT labs for routine testing. It also has a nice array of proprietary test systems for HIV, genotyping, genetics, oncology, etc. Could be impacted by litigation-friendly legislation. Trades at 65.21. www.labcorp.com

For those who want a phund of pharma, look at IHE. iShares Dow Jones US Pharma Index trading at 51.98. I do own this fund in my portfolio, purchased in July.

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