Genzyme solid as a rock

At last - one of my companies issues an earnings report that the market likes!

Genzyme reported revenue growth of 18% and earnings growth of 30%! They are so confident in the growth of their products and in their ability to keep increasing profit margins that they are predicting earnings growth of 20% per year over the next five years!

How many companies are able to predict that kind of earnings growth so far into the future? That is why I stated recently that the risk - reward ration with Genzyme is incredible, and why I have invested a significant sum in them.

Genzyme should make at least $3.50 per share in 2007 so even after yesterday's rise they are on a 2007 PE of 18 and a 2008 PE of 15.

I am almost tempted to put all my investments into Genzyme and forget about the stock market for the next five years but that would be a bit rash!

I like Genzyme's CEO Henri Termeer who clearly shoots from the hip. I like their wide product spread which dilutes the individual risk of one of the products falling out of favour. And I love the fact that they would probably be untouched by a global recession. Just to add the icing to the cake they have a substantial pipeline with several new products coming to the market over the next couple of years.

Watch out eBay, Genzyme is rapidly becoming my favourite investment!