On Sept. 10, Standard & Poor's equity research group made changes to the S&P Top 10 portfolio -- those issues it considers to be the best candidates for capital gains over the next 6 to 12 months. S&P replaced medical-device maker Boston Scientific (BSX ) with Intrado (TRDO ), a leading provider of U.S. "911" emergency response infrastructure for both wireline and wireless telecom networks (See BW Online, 9/8/03, "Where Emergency Calls Are Welcome").
Boston Scientific left the portfolio after S&P analyst Robert Gold downgraded the stock's investment ranking to 4 STARS (accumulate) from 5 STARS (strong buy) on Sept. 9. (All the stocks in the portfolio are ranked 5 STARS.) Gold cited regulatory risks to the company's stent products and increased concerns over a possible price battle with rival Johnson & Johnson (JNJ ),which led him to reduce his 12-month target price for the stock to $68 from $75.
Meanwhile, S&P analyst Todd Rosenbluth believes that Intrado will be a primary beneficiary of several regulatory trends, which should help boost profit growth. He also sees greater demand for Intrado's mass-disaster notification services. Based on a blend of ~
Year-to-date through Aug. 29, the S&P Top Ten portfolio gained 24.42% vs. an advance of 15.95% for its benchmark, the S&P 500-stock index (both of these performances include dividends).
Here's the latest list:
S&P Top 10 Portfolio
For more information about the Top 10 portfolio, please visit http://www.businessweek.com/investor/content/jun2002/pi20020617_8998.htm
By Ken Shea and Robert Gold