november 14, 2005 portfolio update
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TRANSCRIPT
November 14, 2005
PORTFOLIO UPDATE
JPMorgan Chase & Co. (JPM)
November 14, 2005
PORTFOLIO UPDATE
Company Description• Leading global financial services firm
– Investment Banking Advises on corporate strategy and structure, capital raising in equity and debt markets, risk management and market-making in cash investments and derivative instruments
– Commercial Banking Serves 25,000+ clients with annual revenues from $10 million to $2 billion– Treasury and Security Services Provides transaction, investment and information services to clients– Asset & Wealth Management Provides investment management to retail and institutional investors, financial intermediaries and high net worth
families and individuals– Retail Financial Services Provides consumers and small businesses with financial services including deposits, investments, loans and insurance– Card Services Largest issuer of general purpose credit cards in the U.S.
JPMorgan Chase & Co. (JPM)
JPM 2004 Net Income Breakdown
Investment Bank
Retail FinancialServices
Card Services
Commercial Bank
Treasury andSecurity Services
Asset and WealthManagement
November 14, 2005
PORTFOLIO UPDATE
Stock Performance & Events
JPMorgan Chase & Co. (JPM)
•Event 1: Agree to pay $2 billion to Enron Investors
Involvement with the accounting scandal that led
to Enron’s collapse
•Event 2: Hurricane Katrina
3rd Quarter earnings released in Nov. included
$400 million in estimated credit losses
•Event 3: New CEO
James Dimon will succeed William B. Harrison, Jr.
at year end, 6 months earlier then expected
- Purchased on 2/25/2000 for $51.08
- Now trading at $38.26 (Friday Close)
- Major losses occurred in 2002:
- Overexposure in derivatives
- Lack of proper accounting of derivatives
- Role in hiding accounts associated with Enron
12
3
November 14, 2005
PORTFOLIO UPDATE
Risks• Overextended?
- Recent mergers with Chase and Bank One• Merger-acquisition risks
- Merger with Bank One has been seen with uncertainty through some analysts opinions. Loss of key employees and disruption of ongoing business may hurt client and supplier relationships
• Internet Security- Increasing concern of rising theft associated with online banking
• Stiff Competition- Operating in a highly competitive industry which is experiencing consolidation. Other mergers and acquisitions in industry include Provident Financial by National City, GreenPort by North Fork and FleetBoston by Bank of America
• More involvement with accounting scandals to come?-Reputation hurt for involvement with Enron scandal-A similar scandal would be devastating to reputation
JPMorgan Chase & Co. (JPM)
November 14, 2005
PORTFOLIO UPDATE
Opportunities• Full Integration with Bank One
- Merger with Bank One still not fully integrated- 3Q profits included $500 million in merger savings- Total of $3 billion in savings expected to be realized by end of 2007
• Turning the company around- Similar to the turnaround Bank One had, management must focus on transforming JPM and properly integrating a decade of mergers and acquisitions
• Concentrate on core businesses- Sell small businesses in order to concentrate and strengthen core businesses
• Growth in Asset Wealth Management- According to report published by Merrill Lynch/Cap Gemini Ernst and Young, total global wealth of high net worth individuals grew by 7.7%
• Rising Interest Rates- Expected to result in strong growth in the equity markets- Will boost the company’s interest income
• New CEO- James Dimon will succeed William B. Harrison, 6 months earlier then expected, markets have seen this as a positive factor
JPMorgan Chase & Co. (JPM)
November 14, 2005
PORTFOLIO UPDATE
Conclusion• We should Hold JPMorgan Chase & Co.
– Integration with Bank One is leading to increased revenues- Stock price has shown growth as 3rd Quarter earnings were positive
– Bank One has experience in rebuilding and transforming as it underwent a similar turnaround that JPM must undergo to reestablish itself
– New CEO will provide leadership to concentrate company on core businesses
– Other recent analyst opinions have been upgrading the stock value to hold/market outperform
– Stock price will not skyrocket but will trade consistently
JPMorgan Chase & Co. (JPM)
November 14, 2005
PORTFOLIO UPDATE
(SOV)
Graham Gullans
11/14/04
November 14, 2005
PORTFOLIO UPDATE
Company Description
• Sovereign Bank is one of the largest financial institutions serving, Mid-Atlantic and New England regions. – Consumer Bank
• Auto Loan, Home Equity, Mortgages, Checking, ATM
– Corporate Bank• Business Line of Credit, Investments, Money Market,
Capital Markets, Checking, Management services.
Sovereign Bank [SOV]
November 14, 2005
PORTFOLIO UPDATE
Stock Performance & Events
Sovereign Bank [SOV]
• The NYSE is considering blocking SOV’s request to sell $2.4b equity stake to Spain’s Banco Santander giving them 19.8% ownership in SOV. Relational who owns 7.3% of SOV states that they want shareholder approval before sale to Banco Santander.
• Relational is also in a position to block the acquisition in which SOV plans to buy NY based - Independence Community Bank for $3.6b
Disgruntled shareholders
November 14, 2005
PORTFOLIO UPDATE
Risks – M&A• "Relational is astounded by this expensive series of
transactions," – Selling 19.8% of stock to Banco Santandar– Purchase of Independent Community Bank
• The price for Independence represents about a 29 percent premium to its closing share price of $32.45 on Friday.
• "Not only will Sovereign pay what we believe is an inordinate price for assets that are riskier than Sovereign's, but our analysis shows that these transactions will be dilutive to earnings when compared to a share repurchase in both the near term and the long term," Relational said.
• Downgrade by Bear Stearns, Ryan, Beck & Co, etc from Outperform to Market Perform – offers little growth opp.
Sovereign Bank [SOV]
November 14, 2005
PORTFOLIO UPDATE
Opportunities
• The partnership with Santander should result in many financial and operational benefits for Sovereign, including leveraging Santander's expertise in technology, marketing, and retail banking, and improving Sovereign's debt credit ratings
• With purchase of ICBC, Sovereigns geographic coverage is the size of original FleetBoston before its acq. by BOA
Sovereign Bank [SOV]
November 14, 2005
PORTFOLIO UPDATE
Summary• My Opinion = Neutral (Not adverse to a Sell
pitch or Hold) because:– Their geographic coverage is expanding,
consistent with the rest of the industry. – SOV returns = 63% in last 3 years compared to
7% by Lehman mid-cap Bank Index.– There are no foreseeable large long term growth
opportunities.– 100 week range: $20 - $25, selling at $23– Disgruntled Shareholders, SOV board difficulties
Sovereign Bank [SOV]
Pros (+)
Cons (-)
November 14, 2005
PORTFOLIO UPDATE
International Business Machines Corporation (IBM)
November 14, 2005
PORTFOLIO UPDATE
Company Description• The principal activity is to provide
business and information technology services
• Global Services: provides consulting services to clients. Often the solution to clients problems requires IBM software and hardware, but other suppliers’ products may be used if necessary
• Hardware Product: – Systems and Tech – Provides advanced
computing power and storage capabilities– Personal Systems – Personal computers
for business and home
• Software: consists of middleware and operating systems software
• Global Financing: customer & commercial financing, marketing
• Enterprise Investments: develops and provides industry-specific IT solutions
[International Business Machines Corporation (IBM)]
2004 Revenue Breakdown
Global Services
48%
Hardware32%
Software16%
Enterprise Investment
s/Other1%
Global Financing
3%
November 14, 2005
PORTFOLIO UPDATE
Stock Performance & EventsMicrosoft Antitrust issues resolved
-operations restructuring-2Q05 loss
[International Business Machines Corporation (IBM)]
•December 2004: Leveno Group Ltd. announced to purchase IBM’s Personal Computing division.
•April 15 : Restructuring actions cost about $1.3 to $1.7 billion, cut 10,000 to 13,000 jobs and record a second quarter charge
•July 1: settled with receiving $775 M from Microsoft
November 14, 2005
PORTFOLIO UPDATE
Risks
• Year-over-year revenue growth of -0.4 is considerably below sub-industry average of 3.6
• IBM tends to underperform the S&P500 by 39% in bull market, and in bear market the shares generally decrease by 47% more
• Both Institutional investors and insiders decreased their numbers of share
[International Business Machines Corporation (IBM)]
November 14, 2005
PORTFOLIO UPDATE
Opportunities
• 3Q05 EPS $1.26, a positive surprise of 11.1% above $1.13 forecast.
• Restructuring started to benefit the company• Undervalued (trailing & forward P/E, forward PEG is
discounted about 21% in comparison to 5 yr average)
• 4Q05 EPS forecast increased from $1.87 to $1.93, a rise of 3.3% while industry average moved -2.0%
[International Business Machines Corporation (IBM)]
November 14, 2005
PORTFOLIO UPDATE
Conclusion/Summary
• We should hold IBM because:
• Strong recovery potential
• Slightly undervalued
• Predicting strong 4Q05 earnings
• 1yr Price target $85 <PIBM< $105 (mean:97.33)
[International Business Machines Corporation (IBM)]
November 14, 2005
PORTFOLIO UPDATE
EMC Corporation (EMC)
November 14, 2005
PORTFOLIO UPDATE
Company Description
• EMC is engaged in creating products and solutions for information storage. – EMC products include storage systems that
manage and store files– EMC software supports these systems and
other technology infrastructure– The newly acquired VMware helps to simplify
the way infrastructure systems are managed across the board
EMC Corporation (EMC)
November 14, 2005
PORTFOLIO UPDATE
Stock Performance & Events
52 week LOW
(04/15/05)52 week
HIGH(01/03/05)
EMC Corporation (EMC)
•52 week HIGH: (01/03/05) -- $15.09
•52 week LOW: (04/15/05) -- $11.10
•Current Price: (as of 11/11/05) -- $13.67
November 14, 2005
PORTFOLIO UPDATE
Risks
• EPS has declined 5.01% over the past 5 year
• Technology stocks are not as sexy in the marketplace as they once were
• EMC’s P/E ratio vs. the computer hardware industry is 96.06% and makes it overvalued
EMC Corporation (EMC)
November 14, 2005
PORTFOLIO UPDATE
Opportunities
• Analysts at S&P feel that Sarbanes-Oxley will create more of a need for data storage for corporations
• The acquisition of VMware can help EMC boost revenue by acting as a multi-infrastructure support system
• EMC has a strong balance sheet with over $3 per share in net cash and investments
EMC Corporation (EMC)
November 14, 2005
PORTFOLIO UPDATE
Conclusion/Summary
• We should HOLD EMC because:– EMC’s AMware division presents a new
growth opportunity for the company– The technology industry is picking up due to
increased spending and developments in tech– Sarbanes-Oxley requires that much more
information is to be stored for regulatory reasons
EMC Corporation (EMC)
November 14, 2005
PORTFOLIO UPDATE
Cepheid (CPHD)
November 14, 2005
PORTFOLIO UPDATE
Cepheid and the BioTech Industry:• Develops systems for Genetic Testing, for
clinical, industrial, and biothreat markets– SmartCycler –DNA amplification for genetic
analysis– GeneXpert–along with SmartCycler
technology automates sample preparation– GeneXpert Anthrax—detection of anthrax
(Biothreat sales are 68% of total sales)
[CEPHEID (CPHD)]
November 14, 2005
PORTFOLIO UPDATE
Stock Performance & Events
[CEPHEID (CPHD)]
•Event 1: Announced a loss per share of $.09 in the 2nd Qtr because of higher costs
•Event 2 : Announced a loss per share of $.08 in the 3rd Quarter
Event 2:November 3,
2005
Event 1:August 6, 2005
November 14, 2005
PORTFOLIO UPDATE
Risks
• Beta is 2.08—high volatility
• YTD Return is –12.7%, compared to the Industry Return of 19.7%
• No P/E because earnings are negative
• Cepheid has reported a loss per share for at least the past 5 quarters
[CEPHEID (CPHD)]
November 14, 2005
PORTFOLIO UPDATE
Opportunities
• Sub-Industry —BioTech is a growth industry with is expected to have positive earnings in 2006
• Revenue has grown rapidly (158%) over the past 3 years, compared to 11.84% for the Med. Equipment Industry.
• Cepheid is focused on the LT, with large R&D expenditures
[CEPHEID (CPHD)]
November 14, 2005
PORTFOLIO UPDATE
Conclusion
• We should pitch an sell next week because:
– Earnings have not met expectations– High Beta (2.08)– Negative earnings, YTD Return, Cash Flows,
ROA, and ROE
[CEPHEID (CPHD)]
November 14, 2005
PORTFOLIO UPDATE
MSFT
November 14, 2005
PORTFOLIO UPDATE
Windows OS - 31%MS Office - 29%Server & Tools - 23%Home & Entertainment - 8%MSN - 6%Business Solutions/Other - 3%
Company Description
• Microsoft’s principal activity is to develop, manufacture, license and support a wide range of software products for a multitude of computing devices
MSFT
November 14, 2005
PORTFOLIO UPDATE
Stock Performance & Events
MSFT
•52 wk high: $30.20
•52 wk low: $23.82
•Current Price: $27.28
Q1: Earnings Report
52 wk low
Q2: Earnings Report
Q3: Earnings Report
Q4: Earnings Report
Q1 2006: Earnings
Report
Google-Sun Partnership Announced
November 14, 2005
PORTFOLIO UPDATE
Risks
• + + + = ???
• Upcoming product flops
• Slow in computer sales
• Businesses/consumers comfortable current software (Windows XP, etc.), reluctant to upgrade
MSFT
QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.
November 14, 2005
PORTFOLIO UPDATE
Opportunities
• Considered a “value” stock, low P/E, analysts expecting 10% growth rate each year over the next 5 years
• Share buyback + decent dividend = solid investment with returns
• Still hasn’t “jumped” out of the $25-27 range, possible to get in early if winter product releases are a success
• In a transitional period, between products• $40 billion cash, no debt, additional $1 billion in
free cash flow each monthMSFT
November 14, 2005
PORTFOLIO UPDATE
Conclusion/Summary
Chris Liddell
VS.
MSFT GOOG
We should HOLD because:
Release Date: Tuesday, November 22nd!!
November 14, 2005
PORTFOLIO UPDATE
XM Satellite Radio Holdings Inc. (XMSR)
November 14, 2005
PORTFOLIO UPDATE
Company Description
• It is a holding company that provides music, entertainment, and information programming for reception by vehicle, home, and portable radios, as well as over the Internet primarily in the United States.– Satellite radio – 150 channels of commercial
free digital music, sports events, weather forecasts, and more.
XM Radio Holdings Inc. (XMSR)
November 14, 2005
PORTFOLIO UPDATE
Stock Performance & Events
XM Radio Holdings Inc. (XMSR)
52-week low
52-week high
•Favourable quarterly earnings declared on May 5th•Contract with Honda boosts stock price in Mid May.• XM Satellite Posts Wider Loss On Higher Costs in October 27th.
November 14, 2005
PORTFOLIO UPDATE
Risks
• Strong competition with iPod (podcasts) and other Mp3 players.
• Increasing net loss for the last 3 years of operations.
XM Radio Holdings Inc. (XMSR)
XMSR Income Statement
(800)
(600)
(400)
(200)
-
200
400
600
800
2000 2001 2002 2003 2004
$m
m
Revenue
Total operatingexpenses
Operating Loss
Net loss
November 14, 2005
PORTFOLIO UPDATE
Opportunities
• Honda, Audi, BMW, and many more car manufacturers are pre-wiring radio satellite systems to their cars.
• Being a relatively new company, it already has 5.2 million subscribers and growing.
• Its only competitor, Sirius, has 3 million subscribers less than XM radio.
XM Radio Holdings Inc. (XMSR)
November 14, 2005
PORTFOLIO UPDATE
Conclusion/Summary
• We should hold this stock because:– Company is still in its expansion phase,
losses are expected in the first years of operation.
– Number of subscribers is increasing every year.
– Revenue is growing steadily.
XM Radio Holdings Inc. (XMSR)
November 14, 2005
PORTFOLIO UPDATE
Winnebago Industries (WGO)
November 14, 2005
PORTFOLIO UPDATE
Company Description
• Vertically integrated RV manufacturer– 95% of revenues from RVs. – Broad product line: multiple brands, gas and
diesel, low price to $200K+– Does not provide financing– Industry leading returns and quality standards
Winnebago Industries (WGO)
November 14, 2005
PORTFOLIO UPDATE
Stock Performance & Events
10/13 – 4Q profit falls, but beats
street
3/17 – 2Q earnings far
below expectations
Winnebago Industries (WGO)
November 14, 2005
PORTFOLIO UPDATE
Risks
• OIL• Cyclical industry (Consumer confidence / rising
interest rates)• Maintaining market share in industry upswing• Capacity expansion could impact margins• Rising fuel costs (risk to market price, not to
operations)• Rising dealer inventories (market sensitive to
this)
Winnebago Industries (WGO)
November 14, 2005
PORTFOLIO UPDATE
Opportunities
• Baby boomers
• Still relatively low interest rates
• Diesel market expanding rapidly
• Share buyback plan
• Estimated 40,000 RVs will be bought industry-wide following Katrina
Winnebago Industries (WGO)
November 14, 2005
PORTFOLIO UPDATE
Conclusion/Summary• We should hold
WGO, in the long run, because:– Opportunities are still
there– Very profitable and
well run company – Diversifies our portfolio
Winnebago Industries (WGO)
• Question is, do we hold now, or sell and buy back in a few years as oil prices cool off?
November 14, 2005
PORTFOLIO UPDATE
Barnes & Noble Inc. (BKS)
November 14, 2005
PORTFOLIO UPDATE
Company Description
• Barnes & Noble Inc. is a national bookseller, operates over 820 stores nationwide.– Sells books online through BarnesandNoble.com, which was
recently repurchased.– Spun off Gamestop last year (November 2004), profitable
move.
Barnes & Noble Inc. (BKS)
Revenue Breakdown
B. Dalton Stores
4%
Other3%
Barns & Noble Stores84%
Barns & Noble.com
9%
November 14, 2005
PORTFOLIO UPDATE
Stock Performance & Events
Barnes & Noble Inc. (BKS)
Failed to meet earnings by .02, GameStop spinoff
announcement
November 14, 2005
PORTFOLIO UPDATE
Risks
• Susceptible to industry book trends (best sellers, etc.)
• Purchase of books can be affected by geo-political events (rising gas prices, etc.)
• Google Books?
Barnes & Noble Inc. (BKS)
November 14, 2005
PORTFOLIO UPDATE
Opportunities
• Improved Cash Flow is being reinvested into website
• Board is bullish, initiating massive share buyback ($200 million), and also dividend. Len Riggio, chairman is pushing this drive.
Barnes & Noble Inc. (BKS)
November 14, 2005
PORTFOLIO UPDATE
Conclusion/Summary
• We should hold this stock because:– By far the best bookseller in the country, main
competitor Borders is struggling– Buying back shares, very little debt, in general
in strong financial shape– Coffee Shop/Bookstore is still very effective
method of luring customers
Barnes & Noble Inc. (BKS)
November 14, 2005
PORTFOLIO UPDATE
Water Pik Technologies Inc. (PIK)
November 14, 2005
PORTFOLIO UPDATE
Company Description
– A growth oriented consumer products company that capitalizes on well recognized brand names and develops innovative products that provide outstanding value to their customers.
– Personal Health Care Segment ($187 million)• Showerheads – Numerous models ranging from mounted
sprayers to hand-held massagers.• Dental Care – Manufactures different types of electric
toothbrushes. • Water Filtration – Mounted sink filters and replacement
cartridges. – Pool Products and Heating Systems Segment ($134 million)
• Laars and Jandy Pool and Spa Heaters• Chlorine generators, valves, filters, toys, ladders etc…
Water Pik Technologies Inc. (PIK)
November 14, 2005
PORTFOLIO UPDATE
Stock Performance & Events
Water Pik Technologies Inc. (PIK)
•January 4th, after a strong 2004 year, Board is considering selling a portion or all of the company to maximize value for shareholders.
•July 1st, sells Heating Systems business to Bradford White.
•October 3rd hits 52 week high at $21.84
November 14, 2005
PORTFOLIO UPDATE
Risks
• Lots of competition in the Dental Care (Oral B) and Water Filtration (Brita) industries.
• Lacking in ability to develop new products and execute its growth strategy.
• Uncertainty of product testing and regulatory approvals.
• Rising commodity costs and poor housing market
Water Pik Technologies Inc. (PIK)
November 14, 2005
PORTFOLIO UPDATE
Opportunities
• Creating a new dental product that will replace modern flossing.
• Future growth in homecare products after selling heating systems.
• Improving dental market due to current moderizations.
Water Pik Technologies Inc. (PIK)
November 14, 2005
PORTFOLIO UPDATE
Conclusion/Summary
• We should Sell because:– Lots of competition.
• Gillette (Braun), Clorox (Brita), Procter and Gamble (PUR and Crest), Colgate-Palmolive, Conair, Whirlpool, Lennox, Maytag.
• Pentair, Rheem Manufacturing Co., SPX Corp., Burnham Corp., A.O Smith Corp.
– Only an industry leader in Showerheads.– Housing market is doing poorly.
Water Pik Technologies Inc. (PIK)
November 14, 2005
PORTFOLIO UPDATE
Carmax (KMX)
[Company Logo]
November 14, 2005
PORTFOLIO UPDATE
Company Description
• CarMax, Inc. is a retailer of used cars and light trucks in the United States.
• KMX purchases, reconditions, and sells used vehicles.• KMX provides financing of vehicle purchases, the sale of extended
service plans and accessories, and vehicle repair service. • The company also sells new vehicles under various franchise
agreements.
Carmax (KMX)
KMX Revenue Breakdown
Extended service plan
revenues2%
Service department
sales2%
Wholesale vehicle sales
11%
New vehicle sales9%
Used vehicle sales76%
November 14, 2005
PORTFOLIO UPDATE
Stock Performance & Events
Carmax (CMX)
•Consistent downgrading of earnings forecasts.
•June 20, 2005 – Report of First Quarter Earnings (Up 13% YoY).
•CEO Austin Ligon announces his retirement.
November 14, 2005
PORTFOLIO UPDATE
Risks
• Departure of CEO opens company up to cultural change
• Rising interest rates
• Overproduction/success of new cars
Carmax (CMX)
November 14, 2005
PORTFOLIO UPDATE
Opportunities
• Economies of Scale
• Sub-prime financing
• Fewer new car sales
• New car incentives
Carmax (CMX)
November 14, 2005
PORTFOLIO UPDATE
Conclusion/Summary
• HOLD Recommendation – Few major competitors (Autonation is larger
but sells a larger proportion of new cars)– Demand may be impossible to predict, but
company is solid financially.
Carmax (CMX)
November 14, 2005
PORTFOLIO UPDATE
General Electric (GE)
November 14, 2005
PORTFOLIO UPDATE
Company Description
• GE’s 11 divisions are: Advanced Materials, Commercial Finance, Consumer Finance, Consumer and Industrial, Energy, Equipment and Other Services, Healthcare, Infrastructure, Insurance, NBC Universal, and Transportation.
General Electric (GE)
November 14, 2005
PORTFOLIO UPDATE
Stock Performance & Events
General Electric (GE)
•Stock is well-hedged due to diversification
•Rising energy costs strained business during the summer
November 14, 2005
PORTFOLIO UPDATE
Risks
• Energy prices
• Businesses focused on capital goods would do poorly in a weak economic environment
• Rising interests would strain GE Financial Services
General Electric (GE)
November 14, 2005
PORTFOLIO UPDATE
Opportunities
• Synergy savings from announced restructuring.
• Developing renewable energy business
• Economies of scale, diversification, etc.
General Electric (GE)
November 14, 2005
PORTFOLIO UPDATE
Conclusion/Summary
• Recommendation: HOLD– Solid fundamentals– Opportunities in several large businesses– Strong & capable management—great culture
General Electric (GE)
PORTFOLIO UPDATE
November 14, 2005
Microtek Medical (MTMD)
PORTFOLIO UPDATE
November 14, 2005
Designs, manufactures and markets infection control and fluid control products
• Microtek: management of infectious and hazardous waste for the healthcare market in the US &UK– Microscope Drapes– Imaging Equipment Drapes– Specialty Patient Drapes
• OREX Technologies International (OTI)
Microtek Medical (MTMD)
PORTFOLIO UPDATE
November 14, 2005
Microtek - 1 yr performance
August 5, 2005
February 25, 2005
Microtek Medical (MTMD)
•Feb. 25, 2005 - 4Q EPS beat expectations
•Aug. 5, 2005 - Announced appointment of new COO, Mark J. Alvarez
PORTFOLIO UPDATE
November 14, 2005
Risks
• Geographic Concentration– political/economic uncertainty
• Decreased Gross Margins– FX rate & rising fuel prices
• Increased Competitive Pressure – weak domestic branded product lines
Microtek Medical (MTMD)
PORTFOLIO UPDATE
November 14, 2005
Opportunities
• Acquiring new businesses
• Introducing new products
• Increase international sales
Microtek Medical (MTMD)
PORTFOLIO UPDATE
November 14, 2005
Conclusion/Summary
• We should pitch a sell next week because:
– Lack of sufficient growth opportunities– High stock price volatility– Weak industry positioning
Microtek Medical (MTMD)