Big meeting for TM this quarter - with four figures available for investments and the market on the rise, we have quite an opportunity here. I have two stock choices for this quarter - I know its not standard practice, but I figured with the added money to spend, why not? The two stocks are Entropic Communications (ENTR) and Omnicare (OCR).
Entropic Communicatons makes semiconductor chipsets that operate a home-networking system called MoCa. That's the technology behind the multiroom DVR players (in all the commercials for DirecTV and Verizon FiOS ) that allow you to record a TV show in one room and then watch it in another. DirecTV and FiOS already install MoCa in their new HD set-top boxes, and the three leading cable companies -- Comcast, Time Warner Cable, and Cox Communications -- have announced plans to add Entropic chipsets to theirs in 2011. If multiroom DVR capability does become standard on new HD set-top boxes (and that's where the experts think the market is headed) the payoff for Entropic would be enormous. It currently controls 85% of the MoCa market. Its currently trading around $12 share.
Omnicare distributes drugs to nursing homes and assistedliving facilities. Basically Walgreens for institutional customers. The P/E ratio is pretty high because Omnicare has had some debt problems and expensive acquisitions. But from what I've read, they seem to have got things back on track and its got a hefty cash and growing customer base. The baby boomers will all be senior citizens soon. The senior population in the US will grow from 39 million in 2009 to 52 million in 2014. That's alot of gray hairs in nursing homes that will need drugs. This would be a long term stock choice.
Ok that's it for now. We can talk more about it this weekend. However, if the balls fall in our favor tonight, TM may have quite a bit more to invest.....
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