Varian Medical Systems, Inc. (VAR)

Technical indicators bullish

2/122 in Health Care Equipment -(69.8@B/A)

Louis Basenese (Oxford Club) says, "If you don't jump at the opportunity to buy shares at these levels, you might never get another chance."

caps 5, stockscouter10

Consistent and solid performer with a bit of moat & room to grow. Among the more appealing stocks in my newest stock screener. Not that I expect it to because there's other factors involved, but forward valuation (14.2 P/E) on the past 5 yrs. Avg. P/E (27+) would put this stock at about $66. $50 is certainly reasonable in the not too distant future.

Here's the criteria that brought up Varian.

(Market Capitalization (mil $) > 150)
and (PEG Ratio <= .65)
and (Cash / Total Assets % >= 10)
and ((Cash - Long Term Debt) / Market Cap % >= -1)
and (Free Cash Flow / Market Cap % >= 0.73)
and (Return on Equity % - Trailing 12 Months >= 25)
and (Return on Equity % - Year 1 >= 13)
and (Return on Equity % - Year 2 >= 13)
and (Free Cash Flow ($ mil) - Trailing 12 Months >= 0)
and (Free Cash Flow ($ mil) - Year 1 >= 0)
and (Free Cash Flow ($ mil) - Year 2 >= 0)

Just found this one recently while checking some of the top performer picks (ten mile) and really liked what I saw - even added to my real portfolio.

Solid fundamentals. Business will pick up again after the recession

This one caught my eye as I checked out tenmiles recent picks. I like what I'm finding while researching this company and I don't have any picks in the medical sector, so this seems like a good fit.

I've been a Radiation Therapist for 14 years... Varian makes the best linear accelerator out there. This company started in my home town of San Carlos, CA. They are now in Palo Alto. They make an excellent product and their service is excellent. They are always cutting edge with new technology... always innovative and finding ways to spare more normal tissue which is the goal in irradicating tumors. I would buy below $36.

obama, earnings, sales, PE

PEG = 0.7

Bandwagoning here.

Shadowing Ten Miles. My independent research revealed that the company's revenues have held steady through this downturn, which is no small trick. I read their annual letter an learned that besides being the number one player in cancer devices (i.e.- radiation/x-ray/oncology) they are also a rapidly growing player in the x-ray security inspection business. They have products that allow inspectors to use x-ray inspection on ship cargos. Personally, I believe that cancer treatments are going to stay front and center for growth in the medical arena. Recent progress is inspiring. The company appears safe from Obama because: (1) as a device maker, it is already subject to competition from international manufacturers (2) Obama should like the fact that the company's products allow elimination of paper x-ray prints - everything is digital and (3) the fact that the company has so many interlocking patents makes it difficult for people to product cheap knock offs. Although the company sells fo 4X book value, this is cheap compared to the company's historic multiples and compared to my estimate of its intrinsic value. I expect to hold this company until it doubles in value. Then I will see if I want to ride it for a triple.

solid

Tenmiles

tenmile play

high CAPS rating + tenmiles idea; PE a little high, but this is good for growth

I agree with Morgan 628 and other long Fools on this one. Another medical growth story trading like a value stock. Strong position in the oncology market; consistent EPS growth over the last decade; little debt with mid-teen forward p/e about half of ROE. Good stock to sock away for a few years in the mid-30's - could even catch a takeover bid, but absent that will still likely outperform the broad markets fairly handily from this level for those with 3-5 year time horizon.

I think this company has positioned itself at the top of the information food chain in oncology - a uniquely strategic position bound to provide considerable shareholder return if the vision remains there.