Dennis Wassung from Cabot Money Management joins Barry for Stock Talk

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Hey this is the segment of the show where are -- gland -- and we are joined by Dennis Ross on from Cabot money management Dennis we wanna make some money -- you don't.

Doing well but -- out.

I'm not at all hey this I see your first stock -- is Ancestry.Com.

Folks if you're following along with -- the symbol Ford is -- COM what do you like this when Dennis.

Well I guess first -- Cabot -- mention we we believe our clients gonna benefit from all the investment -- longer term secular growth and ancestry back -- fits right in one of those scenes that effectively. And the growing productivity of the Internet and in what. With new capabilities and running that market efforts. Is that he's. You know that the Internet enable you to do more things that ancestry is the market leader and a pioneer. In the online genealogy markets. So enabling people research the -- trees their ancestors. And -- this is that the market's growing.

Is growing that's what I wondered if that wasn't perhaps a limited marketplace I mean -- the you eat panic -- once you've done it why would you go -- it's not gonna generating repeat business I would think.

Well actually is because it's a subscription business so what they're finding out is that people -- it is descriptions and it did get a little -- they like what they find and they keep taking and then finding more so it it becomes an annuity model. And I think what they've you know that it's -- that's -- concern that stocks since it went public. A couple of years ago and it continue to outgrow expectations and what they're finding is that the market opportunities actually larger than even thought initially and that can agree exposure.

Now to 43 dollar stock today you what do you think and on this -- a couple years out.

Well in this company's growing revenue and then -- 30% range right now in and likely will remain in the attic 120 points I think that is a neck and grow twenty. It -- White Sox any year.

If this is good why wouldn't Google just by -- it's only two billion dollar market capitalization when I say Google's somebody bigger. What really easy to take -- candidate I mean so I try to pick stocks and I think might get bought out by somebody else. This would seem to fit that bill.

Well it's certainly a possibility always that possibility but it is -- you can mention it and then it's sort of well market opportunity area in the Stanley tree -- knowledge business so. It doesn't necessarily fit right inside domino sustained but certainly Google has financial wherewithal it is --

So again two years from now it's 43 now what do you think it is two years from now.

And yet. And sort of put -- price -- but I think this is something that can be 607080 dollars now when you know when -- looked at two years certainly.

Okay now let's talk about the one in Bedford mass this is a little company Acme Packet I think I interviewed the CEO not too long ago. Pretty a pretty innovative company these guys are hot they're stock is hot it's gone from -- this is a rocket it's been as high -- 84. And in the last year's been as low as 26 dollars a share folks if you're trying to buy this thing right now the symbol for his EP. DT what do you like.

Well I think as you pointed out this has been quite the rocket ship ride however -- we'll put a point out is. And it reached at -- to about 84 dollars back in April and since then just did a lot of you know that the market turmoil in the technology space and general the stock is section pulled back about 25% so. I think it relatively speaking it's it's a good entry later buying opportunities for the stock now. As you mentioned is to the high flyer at their you know their businesses next generation. Networking struck.

Went and -- where. And wired access to. I'm sorry it's all wireless is I understand it I'm not -- really there's no doubt it they're definitely enabling wireless customers as well as the cable network into but it.

That these networks so effectively. The consumers and businesses and governments are using the Internet and networks were holding a set of applications you. And -- technology enables things like real time secure. Interactive application and declared well there is but it Skype video call. Or voice spoke at a critical point here in terms a lot in technology enabled you to do that very securely and in real time.

All right now I've got it at 62 now I haven't seen much in the way of insider selling so the the guys that are working their today seem to be hold onto their shares. He you wanna give us an estimated price couple years out.

Pamela you know your point two by the way the insiders the company has founders still there and I don't like 1617%.

I like I I gotta tell you -- I hear all these guys say. All Angelo Mozilo is only selling his countrywide shares at fifty dollars because He wants to diversify that's crap. ME that's it's it's unadulterated. Crap He if you if you like your business you hold onto as much of --

I think it's true -- says. Nearly all of -- network -- tied -- and -- the -- Now selling over time but I do like to see companies holding their men's teams holding. Sizable piece of the company and it has the company that's growing revenue forty plus percent right now he's likely to continue -- 3040 plus. The next couple years that you.

They're biggest out of -- you you know their biggest problems they like it find enough engineers. --

Yet the VPE 7000 bucks a year right and they can't find --

You know and near Boston we've got a lot of engineers coming at a school in its that's their the biggest challenge when I talk to the CEO says that that was the thing that you struggled with the most.

And Aaron Kyle Bennett they're being very selective and taking the time and a process but it is certainly. In a terrible their equation and they're they're trying to hire a lot of very good people to.

I'm Psycho that the local you know there's the local and their hiring good people a -- stock we were run at a time Alexi on pharmaceuticals. This also I'd say I call this a knee cap where's -- in ancestry you'd call the small caps -- new.

Yeah it would yeah and you know -- on -- health care and so it but it would cost that's during very profitable Biotech -- and there's not a lot of -- necessarily in this at a range so a lot of companies are -- a pre approval pre revenue companies that. That are quite there yet these guys have a truck that's very successful. There it is another company growing at very strong rate of -- at 3040%. Very based specialist and ultra rare to -- is an area they're drug. Helps people who have immune system problem. Her condition net where you're system actually destroys what red blood cells that. Their drug helps stop that from occurring there's about a dozen diseases that this can be used then there -- one today that's generated 700 million dollar revenue run. And that there's likely be in other approval all of this year so.

How long or how long the patents that for. Does that's a big thing in the drugs are to meet your rice and if you don't have a five tenure patent you knocking them enough time to get your argument back.

To these guys just got to prove to back into doubt that no I believe your got -- a solid college eight and Iran. Here.

And and if they have a good pipeline that can replace. That's a -- the challenge -- got to build that pipeline. Dennis thanks for joining us appreciate your time. Folks I was Denis Watson from Cabot money management three stocks were Ancestry.Com. A COM is the symbol. Alexion Pharmaceuticals ALX end is the symbol.

Acme Packet eight.

Hope you enjoyed the show we will be back tomorrow with -- another addition of lunch money right here on.

AM succeeding WRKO if you wanna email me my email address is lunch money at wrko.com.

Up next it's Michelle McPhee.