Archive for June, 2012

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Inventory/Sales Follow Up

We respond to questions following our piece last week and conclude that our analysis is broadly supported by Bureau of Economic Analysis (BEA) data.  BEA data also shows that the Manufacturing Inventory to Sales ratio in the US is at

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Healthcare’s Utilization Trade Against the Backdrop of May Jobs Numbers

Summary and Conclusion: In making our pro-cyclical healthcare call we intended to be playing offense; however in the face of a potential slowdown in US employment and the risk of a more substantial economic deterioration in Europe, the pro-cyclical recommendation

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Significant Downside Risk From An Inventory Correction – The Stars Are Aligned

The inventory to sales ratio for our covered sectors is at a 25 year high, having jumped since 2008.  There is risk that this corrects, lowering apparent demand and putting pressure on pricing and margins – valuations only discount this

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Quick Thoughts: Facebook Fone, iTV, and Googlerola

  –          Facebook may want a phone to avoid the squeeze by Apple and Google, but building from scratch or buying Opera would be a big mistake.  The logical partners Microsoft and HTC. –          Amazon could do a smartphone using

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