Consumer Staples (non-cyclical)

With 0% investments is A.f.f.e still underexposed to Consumer Staples. In times of volatility and uncertainty capital will move to sectors with less risk such as health care and consumer staples (non-cyclical). It is my recommendation to invest SEK20.000:- to gain a 5% portfolio share. Recommended stocks are:

• Axfood (Hemköp, Willys, Dagab och Axfood Närlivs, Sweden)
• Haakon Invest (Ica, Sweden)
• Oriflame (hudvård, färgkosmetik, dofter, toalettartiklar och accessoarer, Sweden)
• Swedish Match (snus och tobak, Sweden)
• McDonald´s (USA)
• PepsiCo (USA)

Patrik

Medvind för vindkraften

Det verkar som om AFFEs beslut om att gå in i vindkraftsrelaterade aktier är helt rätt.
Läs en intressant artikel om Vestas på E24

/T

Health Care Sector no. 2

If USA moves towards a financial crisis it will bring down other sectors too and most likely spread over the world. Due to the increase in nervous behavior on the stock market it could be justified to increase exposure towards "stable" sectors such as Health Care.

The Health Care sector can be divided into three main categories:

1. Big pharmaceuptical companies such as AstraZeneca, Johnson&Johnson, Novartis, etc. They are profitable but with a modest-low growth. They have difficulties in taking projects to the market. Main focus are to cut costs.
2. Research & Development companies such as Genmab and Alk-Abello. The Nordic stock market have approx. 50 companies with an estimated market value of SEK50 billion. Losses in 2006 were SEK2 billion but will be reduced by half in 2007. Genmab and Alk-Abello accounts for approx. SEK35 billion. They are at the forefront and have announced agreements with Glaxo Smith Kline and Schering-Plough. This type of agreements will increase and create opportunities.
3. Medical Industry & Health Care are a third group. Have stronger growth but similar low risk profile. Nordic stocks can be divided into three subgroups: Medical Equipment (Elekta, Getinge), Medical Articles (Coloplast, Ambu), and Consumer products (Nobel Biocare, Q-Med, William Demant)

Patrik

Health Care Sector

Health Care industrin ligger sent i cykeln. Fokus pa denna bransch börjar när börscykeln visar tecken pa avmattning vilket ofta är fallet strax innan konjunkturcykeln toppar. Fragan är ju var vi befinner oss. En sak kan vi vara säkra pa - den ligger framför oss. Health Care industrin omfattas av "pharmaceutical" företag, "HMO´s", "biotechnology", and "medical equipment" leverantörer. Alltsa kan vi hitta placeringar inom samtliga dessa verksamhetsomraden.

Vad gäller bioteknik är dessa just nu i fokus (och dyra?) p g a den ökande trenden av strategiska allianser mellan forskningsbolag och läkemedelsindustrin. Det är mer och mer tydligt att de sistnämnda kommer att fa svarare att finansiera sin forskning genom höga priser pa olika nationella marknader. De nationella kontrollfunktionerna har blivit tuffare med att godkänna preparat. Alltsa flyttas fokus fran intern forskning till extern forskning och da framförallt till goda relationer med bioteknikbloag. Ser vi ett paradigmskifte inom denna sektor? Kommer detta fa större strukturella konsekvenser pa sikt? Tunga retoriska fragor....

P