The Playbook 100

BRKR @ $15.42 (Bruker Corp) develops life science tools based on mass Spectrometry and materials research tools based on X-Ray technology. Revenues have accelerated 16%, 21%, 26% and 35% over the last four quarters. Earnings are expected to grow 74% this year and another 31% in 2009. We are establishing half a position here and will add the remaining half on a pull back to $13.50. Our stop loss will be set at $12.

IPO's and New Issues

V @ $44 (Visa) priced above its range of $37-$42 tonight and will raise $17.9 billion, easily eclipsing the previous U.S. record IPO of $10.6 billion set by AT&T Wireless eight years ago. We were a little surprised by the pricing in this market. Many people feel this will be the next Mastercard (MA) but it won't, and I'll tell you why. After the offering, Visa will have a market value of $36 billion, or $8 billion more than Mastercard's current $28 billion value. When Mastercard came out, they priced their deal and only had less than a $6 billion market cap. In other words, Visa is being priced off of Mastercard's current value. Unlike Mastercard, you will not see Visa climb 500% over the next two years. However, we feel you could see a 100% increase over the next two years. We are going to establish half a position under $45. Otherwise, we will exercise patience and wait for it to come in for us. The remaining half will be added on any weakness that brings the stock toward the $40 level, which could easily happen in the current environment. This stock will be added to the Playbook 100.

Shorts

SLB @ $84.37 (Schlumberger) provides technology services, project management and information solutions to the international oil and gas industry. We are bullish on this stock long term but feel a short here with a tight stop at $90 could be rewarded nicely if oil pulls back to $100 a barrel. For the options players, we would play the April $95 Puts (SLB PS) at $11.60 with a stop set at $8. A move to $72 on the downside could net us in excess of 100% return and that is a good risk to reward ratio. 

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