Bought a 2% position in PerkinElmer (ticker PKI) at $23.02.
Good day to buy given the pullback in the markets and PerkinElmer passed a couple screens for me, including:
(1) Majority of sales come from outside the U.S. (around 60% last quarter)
(2) Healthy secular trends in healthcare spending (especially China) and environmental spending (especially China).
(3) Momentum in the business, highlighted by mid-teen top-line growth.
(4) Active restructuring as management exits less attractive businesses and acquires businesses with greater potential.
(5) Decent return characteristics of the business, illustrated by 10% ROI and 13% ROE last Q.
(6) Attractive valuataion of 14.5x C11 EPS estimates, which show close to 20% EPS growth next year.
(7) Potential share repurchases since management has 8 million shares available under a 10 million share buyback program.
For a more complete understanding of the business at the outlook, readers can look through the following recent presentation by management.
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