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TMFHelical (99.09)

October Update of the CAPS port

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November 05, 2008 – Comments (0)

October wasn't all too active.  I have to give some thought to the next administration and what it may mean to my sector centric CAPS port, but that is for another time.

 

I closed 2 picks in October, Celera (CRA) and Varian Medical Systems (VAR).   Both picks were down modestly, but the S&P to which they are compared was down quite a lot, so they were both good gainers for the CAPS port.  I still think CRA will get acquired sometime soon, so I should re-up it.  Since 2000 this company has had too much cash to focus on actually turning profitable -- so it is a bet on a buyout and little else.  VAR is a different story.  I like this company and their products, but they are high $$ items sold to hospitals and such.  The credit crunch should affect this company since already cash strapped hospitals will likely struggle with financing for these new or upgraded products.  High $$ medical device companies don't appeal to me right now (though I bought CPHD in reality in mid-Oct, so I'm capable of being two-faced on the subject).

Additions to the port were 3M (MMM), Sensient (SXT), and Sigma-Aldrich (SIAL).  3M is a conglomerate with a health division and just seemed ridiculously priced in comparison to its own historical metrics in the market sell-off.  Good time to pick up dividend paying companies in CAPS.  Sensient is another dividend related play.  The company makes flavors, fragrances, inks and specialty chemical products (which is biotech of a sort).  These two are good long term hold companies if you can get them at great initial prices IMO - I think my CAPS port did.  The final addition was the re-up of a favorite company specialty chemical and biotech supplier Sigma-Aldrich (SIAL).  I have always liked this and owned it in the past.  In reality, I made a nice sale above $61 a number of months ago as I thought it would suffer when commodity prices ran rampant.  Now that they have fallen back (not all the way, but still substantially), it should benefit.  Plus I like its overseas operations.  When I can, I need to think about buying this again in reality.

 

TMFHelical 

 

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