Healthy Investing=Wealth #12

by | Aug 19, 2003 | Archives

Magic moments of sunset paint shafts of orange and salmon on crystal waves. Evening mists veil a sinking lemon sun that suddenly rises and starts another day. The dusk's desire gives way to sunrise. Day's end and dawn become one. The beginning and end – end and beginning, they become the same. Time stops, and for an instant everything stands still. July-miles north of the Arctic Circle-aboard the good ship, Finnmarken in the Land of the Midnight Sun. The time is seventeen minutes past midnight and the weather is warm, the night is like day.

Merri and I, with our son, Jake, were taking a cruise along the coast of Norway. We had just left Berlin and stopped in Copenhagen to speak with Jyske Bank. This is a trip we make often because we have learned over the years that Germanic bankers are very precise. We often travel to this region because we find the best investment banks are in northern countries of Denmark, Switzerland, Austria and such.

So it should be no surprise that when we are thinking about investing in shares that cash in on the wellness revolution I would contact Michael Keppler, the German value investing expert. Michael is an eClub advisor who rates markets based on good value. My question to Michael was simple. “Do you follow any wellness shares?” Learn his interesting answer here.

Michael follows dozens of such shares and he sent me a ton of data. Here is one share I see that may offer good value now.

Instrumentarium. This company is listed on the Finnish stock market and at Nasdaq (code INMRY). The share price is in the $35 range and has risen steadily over the past years from $10. The company manufactures and sells broad lines of anesthesia, critical care and specialized x-ray equipment. General Electric and Instrumentarium entered into combination agreement for GE to acquire the company and approval is still being sought from the SEC and by European regulators.

Instrumentarium's interim report for January-June 2003 shows that the company's principal activity is the development of medical technology. Operations are carried out through the following divisions: anaesthesia and critical care equipment: supply of anaesthesia and intensive care equipment, systems and services; Medical equipment and supplies: diagnostic imaging equipment, medical and dental x-ray systems, dental hand instruments, hospital and nursing home furniture, operating tables, delivery beds, distribution of medical and laboratory equipment; Optical retail: sale of ophthalmic products and provision of special services. Spacelabs medical inc. (usa) was acquired from GE in 2002. Anaesthesia and medical care accounted for 72% of 2002 revenues; Medical equipment, 19% and optical retail, 9%.

What attracted me from a value point of view is the low PE ratio of 19.9. The Morgan Stanley Capital Index Health Care & Services Universe is 56.9. Cash to book value and price to cash flow are also way below the MSCI benchmarks. What really captured my attention is the whopping dividend yield of 13.24%. The average in this sector is 1.21%. I also like the low debt to equity ratio of 25 (the benchmark is 24).

Based on these value factors this is a share to review and keep an eye on for its growth and income potential.

Come to Jefferson Landing Golf and Country Club in West Jefferson North Carolina and join Thomas Fischer (Jyske Bank) and me to learn more about cashing in on the Wellness Revolution, how to invest in value shares and enhance wealth through choosing the correct currencies. For details go to next message, may all your investments be well.