INTENSIVE CARE

EICU

EICU is coming out tomorrow and I really like this one, despite the fact that I normally do not like IPOs. I like the product, addressable market, low penetration, business model, backlog, cash flow, management and potential growth. It was originally priced at 10-11 range and has been bumped up to 13-15 range, indicating a healthy demand. Provided that it does not gap up too much, I would like to take a small position here.

LMIA

Took a small position in LMIA. I have gone through all stocks in the aerospace/defense sector and I found this one rather attractive. It is small, profitable, clean balance sheet, good management, and large blue-chip-type customers. It is a bit on the expensive side, which I believe is somewhat compensated by its very strong outlook and growth visibility. I also believe it will have a very strong Q1/06 which will provide near term catalyst. Based on my back of envelop calculation, I thought this one might be able to achieve north of $1.0/sh in 2006, which will make this one reachable valued. My near term target is $20, and it could be achieved if its Q1/06 results exceed.

I also like TDY in the same sector. This one is more reasonably valued, but with a relatively lower growth rate. I may buy some on weakness.