Thursday, October 23, 2008

Bookkeeping: Adding to ICON (ICLR)

The action is so random and nonsensical. This Tuesday we wrote about the excellent quarter from ICON (ICLR) - the stock was in the mid $30s. I said I would not buy until it crossed back over $37 as a sign of strength. Well.....the stock is down 17% out of the blue. Now it is down in the mid $25s - losing 25% of its value in 2 days. Excellent.

We'll buy some here.... and then we can sell it on a return to low $30s for a 20%+. Hopefully. I'm increasing ICLR from a 0.5% stake to 1.9% with purchases in the $25.50s.

I do see competitor Covance (CVD) just had an ok quarter with a "warning" about the US dollar but Covance is not ICON. ICON just reaffirmed this 2 days ago - but as we've been saying there seems to be no differentiation among investors in specific companies in a sector anymore. Everything is bad ... or good. But mostly bad. There is a reason I own company one over the other. This speaks to the frustration with this market - cherry picking the good companies in a sector is useless. Time to go bang the head against the wall for a few more hours; let's sell off Google based on the Yahoo earnings. Or Apple based on Dell earnings. Or McDonalds based on Hardees earnings. Why not - it's all the same thing.
  • Drug development services company Covance Inc. said Wednesday its third-quarter profit rose 15 percent on higher revenue from early- and late-stage development programs. Profit rose to $51.1 million, or 80 cents per share, from $44.6 million, or 69 cents per share, last year, Sales rose 13 percent to $467.4 million from $414.7 million a year ago.
  • Analysts polled by Thomson Reuters expected profit of 80 cents per share on revenue of $452.9 million.
  • However, the company said a stronger U.S. dollar will likely crimp momentum, as 40 percent of its total sales come from overseas.
Long ICON in fund; no personal position

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