Wednesday, December 13, 2006

Tool Maker, Slow and Steady

I’ve always had a soft side for the life science tool makers. They’ve treated me well to some nice $$$. It’s currently a $25 billion industry growing at 7% annually and expected to grow to $35.7 billion by 2010 according to the December issue of the Genetic Engineering News. The major players in this industry are Sigma Aldrich (Ticker: SIAL), Techne (Ticker: TECH), Invitrogen (Ticker: IVGN) and Qiagen (Ticker: QGEN). I like Sigma Aldrich the most. They’re mostly a chemicals biz, but aggressively moving into some higher margin areas such as functional genomics. This company is very shareholder friendly. They constantly repurchase their own stock and pay a nice little dividend. So if I were to pick just one from this group; it would be Sigma Aldrich. If you want to add a little excitement with a little higher growth, I would look at Qiagen. They dominate the plasmid purification kit market and have a steady high teens plus growth rate. This sector is a safe way to play the biotech companies, but they are highly leveraged to R&D and government funding. I currently own Qiagen and Invitrogen, but looking to swap a bit into Sigma Aldrich.


At December 19, 2006, Anonymous Anonymous said...

we lokk at one active insight of decions through sigma aldercht fimrs,you 've given description on high income profit in thier deal as
they 're working on chimicals tools.we might see whither to be paticipate or not? as so in one suggetion to the matter if it not effect to the regular live system of persons who want to take shares.
than I think we might try to join and have a good voluom future if you publish any thing just add some more details on thier
tottal run business.really it's not joke business but an active matter of chimicals.thank you shahoo


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