Zeev's Turnips Patch-No Politics (ZEEV)

[DlphcOracl]

Bottomfishers Special --- for LT investors only.

Anyone looking for a few LT holds for the more stable portion of their portfolio might want to take a look at Forest Labs (FRX). It is down nearly 50% from its high of $79 in February of this year yet remains one of the big players in the generics space. The medical sector in general and the pharmaceuticals in particular are way out of favor but the LT trend and demographics strongly favor the generics sector.

FRX has the size and marketing staff and skills to be one of the survivors and it is now trading at $40. Although this may not be the bottom, it has reached an NAV where the valuation is compelling: PEG 0.85 and ROE of 27%. Worth a partial position at these levels.