Fall 2009

Amedisys is well-positioned in the healthcare sector, particularly in home health care, which is expected to grow due to an aging population and increasing demand for at-home services.

Care Investment Trust offers a unique investment opportunity in the healthcare real estate sector, benefiting from stable cash flows and long-term leases with healthcare providers.

The current AMED share price implies little to no revenue growth due to concerns over Medicare reimbursement reform. However, Amedisys is positioned for growth through acquisitions, a strong pipeline of startup agencies, and improved operational efficiencies. The company is expected to maintain or even expand margins, presenting a buying opportunity for investors.

I propose a long position in the common shares of Care Investment Trust as the stock is meaningfully undervalued on the basis of its assets and near-term catalysts leading to value realization are probable. The company is trading at 63% of book value and 70% of estimated NAV, with a strong balance sheet and liquidity position, and a dividend yield of 10%.

Dave Samra mentioned that they bought Google below $300 per share, which was implying around 13x earnings. This suggests that he sees value in the company due to its strong business fundamentals despite macroeconomic concerns.

IGM Financial is a terrific business with a strong balance sheet and a very good market position in the money management business in Canada. The investor believes it turned out to be a terrific investment after purchasing a meaningful stake.

Arch Capital is considered one of the premium franchises in the Property & Casualty insurance business. The investor bought Arch at a cheap price-to-book value when its book value was understated due to some investments being marked down unnecessarily.

Covidien is one of the largest medical device companies globally, and a significant portion of its revenues comes from the U.S. The investor is concerned about potential tax increases that could impact profitability and R&D spending.

Samsung Electronics is viewed as a low-cost producer in a commodity-like business, with a strong balance sheet. The investor believes that as consumption increases and production decreases, Samsung will benefit from the eventual market recovery.

Constellation Brands has a strong position in the wine market and is benefiting from a trade-down effect where consumers are opting for less expensive wine brands. Despite some gross margin pressure, the company is undergoing a cost-reduction program and has a solid EBITDA margin. The current market valuation implies that the beer business is essentially free, and there is significant upside potential as the stock is undervalued compared to its intrinsic worth.

Cadbury is seen as an attractive acquisition candidate due to its strong confectionery business and the strategic moves it has made to focus on its core strengths. The expectation is that Kraft will eventually increase their bid to acquire the company, which adds to its appeal as an investment.

Danone is the leading global yogurt manufacturer and has undergone a strategic reconfiguration of its business, selling off less profitable segments and acquiring growth-oriented businesses like Numico. The company benefits from negative working capital and has a strong growth rate in a category where per capita consumption is still low in the U.S. and emerging markets. Its leadership in R&D allows for the development of innovative products with health benefits, making it an attractive long-term investment.