Stock Talk - Alex Morozov, Morningstar
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Tami Luhby, CNN MoneyTami Luhby, CNN Money
out there. All my family is out and Antarctica there in -- hockey players all these Bruins players that you love -- -- where you think they're from either from you figure from Massachusetts. What -- -- the American players on the crossed amber is here now so why. Why did you leave. My dad a transfer okay Kampman you'd still be their -- guys that are not facts you'd go back tomorrow -- if you. The problem is I'm not a good enough occupier he it to be. Saskatchewan. Produces more hockey players per capita than any other place in the world to -- a -- paid attention the past couple weeks. But supposedly the number one hockey player in the world it turns out. He's not that Iraqi player you know he is that it is just that the other Canadian playing against -- is a better player. -- birdie is a better player than Sidney Crosby . When he doing and you look at the game of hockey -- get ready looks at the offensive side of hockey chemicals that yet now it's a two -- game you gotta be of the play defense Sidney Crosby can't play defense he sucks and the defense he's he's he's a wimp. And he doesn't play. That's an uncle Chris Chelios . Give me a belt made him but he running each. Is. Like rich rich this is embarrassing to to stop that knowing that Jack and Roenick now. Wage on the island -- got your -- -- these. Players I sound yet I've actually her -- The hall of famers I mean it the best like Bobby or he's from Canada and -- now he's from Saskatchewan. Wayne Gretzky he's from -- In isolating it like that's your national sport that you didn't see any baseball players made it in the -
Casey Ross, Boston Globe, on PriceWaterHouseCooper's
Casey Ross, Boston Globe, on PriceWaterHouseCooper's
right now are taking a look at the waterfront -- the new real estate option. Then moving to a different officers bank put you know they want to establish -- -- exciting new abandoned building and so. The seaports and interest and opportunity that drawing a lot of companies trying to. Why I think I like the financial district to that what's the big attraction of the seaport area you name it may be a mess it's. Poll. It's cheap and it's that's the main thing is that you know right up there looking around at look at okay -- and I moved to and another office building downtown and I stay put. You know that the currently rate or should I mean he moved to the seaport there's a -
Shawn Kravetz, Esplanade Capital
Shawn Kravetz, Esplanade Capital
been and then. We'd like to buy the whole company and then negotiated transaction . Do you own any shares in the company now. We do we heard the second largest outside shareholder. The family owns roughly 90%. Of this company. DE Shaw. Very very large hedge fund in New York City is the largest outside shareholder and we are number two. Why panel why they're why they hesitating to solitude they must feel that the shares are worth Maurizio I think I can conclude. Well. I don't wanna speak for them but I suspect you're right on the money. They had no idea that and they know there's a lot of value there. And I guess they're confident that someday they will get that we would like to help shareholders get that values sooner rather than later. Because. We thought the assets -- well. You made the statement that you feel the -
What's Up On Wall Street - Andy Cinko, Bloomberg News
What's Up On Wall Street - Andy Cinko, Bloomberg News
we asked a question of the day which had to do with Social Security And collect your Social Security for retirement age or are you going to collect literally. 73%. Of Americans collect their Social Security early in the vast majority of cases I think that's a mistake but people do it for any reasons. When I came up with June and I think is a good idea for us to talk about is you know we're sitting here and and and acting all high and mighty. As it relates to this discussion about Social Security in the back the matter is we have access to tremendous resources on this topic whether the courts are now ski. Who worked for the departments of security for 37 years or whether it's Chris Farrell was a reporter for Bloomberg we have access to a lot of data. What I would like to do is make this information on Social Security Tips to maximizing -- worst Social Security benefits I'd like to make it available to our listening. I think it's they I think it's important. You know people refer to it I think some 97 -- as areas of securities of Ponzi scheme this. I disagree with you respectfully -- disagree with you but you know -- more importantly. Please educate yourself on Social Security Call this phone number it's 508591. 5444. Asked for the guide about Social Security tell the I would pay -- wanna learn more about Social Security Barry seems to know a lot you know why I read a -- I studied this stuff every day it's what I do for a living. 5085915444. Is the number you should call. Call them. Tell -- you're listening to the financial exchange and you want to learn more about how he can maximize your benefits. Out of Social Security I think you'll be glad you made the call I know I was glad when I read the report on Social Security Maybe a more informed consumer. 5085915444. Up next Sean Kravitz he's the president of a hedge fund. That has been trying for
Automatically Generated Transcript (may not be 100% accurate)
Dow's up about 35 points and opened her it's fifteen minutes we do have some economic data it releases that we're giving you momentarily. Right now our guest is Alex -- -- off from morning star Alex good morning and welcome to the show. Good morning. 88 was wanted to talk to you about your stock picks today in both ten day figure both medical device companies Thermo Fisher is that the first one. That is correct actually both of those companies have some Massachusetts. Yeah I do with their official is headquartered in your stated there and a comedian. Does have its name on on a Green monster. That's right I was there the other day and I saw -- need EC committee in around a lot below. Let's talk about Thermo Fisher first it's a 52 dollar stock the symbols TMO. What is it about this medical device maker that you like. The best thing about Thermo Fisher as it's really the one stop shop for anything. Research related. So any time your research lab -- requires that our basic consumables -- More sophisticated equipment or even just steps from shelving units -- Fisher can provide that. So really you don't need to go pure laboratory in -- running very. Very expensive very time consuming research you don't really need to go anywhere else but from a centrist catalog because we've got everything pretty -- Now do they have any great products that are higher margin products it regularly by -- my concern about these companies is. You might by the stock in the new find out that they've got a -- Hip replacement it's coming off patent or the you know they're gonna be exposed to big downside. No and that's actually what why I've really -- our official if you look at their product mix. Consumables. Account for about almost half of the half the total revenue. Which means that the more expensive more sophisticated instruments only account for about 40% of their revenue. Analysts say more sophisticated instruments were not talking about. Multi million dollar instruments most of their animals -- -- platforms really fallen to this couple thousand dollars of -- at that range. Company has about 300000 closest -- so it's it's really not exposed to in particular what products. Why is it down thirteen dollars for its 52 week high. Well if you look at what happened last year right around August time that would hurt a lot of debate about. Potential sizable cuts to its a lot of government budget budgets and and I -- budget. And that they're efficient this is a little exposed -- government and academic spent in about quarter of their total revenue comes from. Academic and government institutions working on now on research projects. So that's what you did see out of efficient deaconess sizable. Armed that said I think stated that. A lot of investors really overestimated the impact on the company's -- current revenue model. Our overall academic and government is going to be probably down slightly this year but you look at all the other and markets they're gonna be more enough and knocked off that weakness in the form by an academic business. All right Alex your next check of Vivian and use as you mentioned their big sponsor of the Boston Red Sox. This is 55 dollar stock in its very hot close to a 52 week high what's the difference between two video comedian and Thermo Fisher. Look at video and if you're not relive the moment with a history of committee in its -- the -- not healthcare unit of Tyco and so what happened under Tyco the company was severely under invested in and as a result of really -- behind innovation curve. A lot of its competitors just past that and a lot of it's a product areas. So ever since the spin off from -- that happened about five years ago committing and spoke with some really has been on improving the product portfolio particularly this device business. For the company to the amount sizable investment in. More importantly its pipeline is as good as it's ever been as a result you look at that are you looking at the company that probably has the most attractive growth profile. Among all met -- But tech companies. In addition the company still has this legacy pharmaceutical business and it's -- to spin it out early and 2013. So I wanna get shares in the new it occupied by comedian does that mean I'm gonna get shares in the pharma company now. Get a choice which one you want it and I think a lot of folks who probably gonna go with a device business because that is a much more attractive business. But even the farm businesses not as bad as this it has has been in the past still. Something tells me that wants the farm businesses don't install. It will probably experiences the more listed as the committee of -- business the company will be able to allocated to our deep budget a little bit more. In a targeted way. And as a result will not be -- capital that is right now. Any upside left in the stock it's at 55 or 5493. As what I see trading at right now. -- upside my fair value estimate that and that's that's some parts analysis included. It's 76 dollars so I think there's still plenty of upside. And meanwhile the company does the above one point 6% dividend -- old. It's got 77%. Freaked some percent cash flow -- so overall it -- Well you can still wait for a form of business -- out it really paid you to wait. Are you -- 75 dollar price target on competing with your price target on Thermo Fisher. I don't official fair value is seven dollars and on Canadian correction that's 76 bill. 76 -- Alex thank you very much for your time appreciate your research. That's Alex -- is not joining us today from Morningstar his two stock picks. Where Thermo Fisher TM -- is a symbol for Thermo Fisher. And his price target on that is seventy dollars a share. The -- in the symbol COB currently trading at 5493. Now has a price target on the Vivian. Of 76 dollars a share.
