mlk_man
12-27-2006, 06:42 AM
Growth at a Value Price
Joseph Biondo
Biondo Investment Advisors, LLC
http://www.bottomlinesecrets.com/images/drop_caps/blue_h.gif eading into the New Year, I expect that the stock rally we've been enjoying will continue. But in this part of the market cycle, continuing strength won't be spread evenly across the spectrum. Instead, growth stocks will be at the forefront. I'm particularly enthusiastic about three growth stocks that also represent unusual value. They've been hurt by temporary glitches in the companies' businesses -- but these glitches will ultimately be resolved...
Medtronic, Inc. (MDT). This medical technology leader has more than doubled its earnings during the past five years. Yet today, shares sell for little more than they did at the end of 2001. Medtronic shares represent a good buying opportunity because the company has been indirectly hurt by a recall of a competitor's implantable defibrillators. This setback is strictly temporary. Recent share price: $54.20.
Amgen Inc. (AMGN). Earnings have been increasing strongly at this premier biotech company, yet the share price today is about where it was in mid-2003. What has scared some investors is an attempt by Roche, the Swiss drugmaker, to encroach on Amgen's territory by seeking federal approval for a new anemia drug. To defend its own anemia-drug business, Amgen has sued for patent infringement. With its history of successful patent suits, I believe it will win. Recent share price: $70.48.
Qualcomm Inc. (QCOM). Qualcomm is the creator of code division multiple access technology -- known by millions of cell-phone users as "CDMA" -- and the company's stock has been hurt this year as other companies in the wireless sector, notably Finland's Nokia, fight Qualcomm over royalties related to Qualcomm's extensive patent portfolio. Ultimately, even if these cases don't settle completely to Qualcomm's advantage, the litigation will end and the uncertainty along with it -- and Qualcomm's stock will rebound. Recent share price: $39.78.
Joseph Biondo
Biondo Investment Advisors, LLC
http://www.bottomlinesecrets.com/images/drop_caps/blue_h.gif eading into the New Year, I expect that the stock rally we've been enjoying will continue. But in this part of the market cycle, continuing strength won't be spread evenly across the spectrum. Instead, growth stocks will be at the forefront. I'm particularly enthusiastic about three growth stocks that also represent unusual value. They've been hurt by temporary glitches in the companies' businesses -- but these glitches will ultimately be resolved...
Medtronic, Inc. (MDT). This medical technology leader has more than doubled its earnings during the past five years. Yet today, shares sell for little more than they did at the end of 2001. Medtronic shares represent a good buying opportunity because the company has been indirectly hurt by a recall of a competitor's implantable defibrillators. This setback is strictly temporary. Recent share price: $54.20.
Amgen Inc. (AMGN). Earnings have been increasing strongly at this premier biotech company, yet the share price today is about where it was in mid-2003. What has scared some investors is an attempt by Roche, the Swiss drugmaker, to encroach on Amgen's territory by seeking federal approval for a new anemia drug. To defend its own anemia-drug business, Amgen has sued for patent infringement. With its history of successful patent suits, I believe it will win. Recent share price: $70.48.
Qualcomm Inc. (QCOM). Qualcomm is the creator of code division multiple access technology -- known by millions of cell-phone users as "CDMA" -- and the company's stock has been hurt this year as other companies in the wireless sector, notably Finland's Nokia, fight Qualcomm over royalties related to Qualcomm's extensive patent portfolio. Ultimately, even if these cases don't settle completely to Qualcomm's advantage, the litigation will end and the uncertainty along with it -- and Qualcomm's stock will rebound. Recent share price: $39.78.