Genzyme juggernaut rolls on

Genzyme reported Q2 results this week. With revenue up 21% on a like for like basis they were as solid as ever.

The amazing thing about Genzyme is that all its products keep growing on a quarterly basis, nearly all by double figure amounts. As it has about ten products this growth is diversified and consistent.

Genzyme generates excess cash which it used to invest in manufacturing capacity, strengthen its pipeline with acquisitions and buy back shares.

Genzyme is available for a 2008 PE of less than 20. As management have publicly stated that they are aiming to grow the EPS by 20% yearly up to 2011 this make Genzyme a great buy. It has defensive qualities and it is growing.

Last year I doubled up on Genzyme. With the declines of RBS and eBay it is now by biggest holding, showing a 20% gain while most of my other holdings have been falling.

Am I tempted to sell any? Absolutely not! My Genzyme shares are going nowhere. I have learnt by painful experience that taking a quick profit only guarantees that you never make spectacular gains.

Genzyme is a keeper.