Forget About Life Technologies Corp. (LIFE), Check out This Stock

Thermo Fisher has a somewhat more diverse revenue stream than Life, getting revenues from four end markets: Industrial, pharma/biotech, healthcare and government. Yet, the growth in Thermo’ largest segment, laboratory products, which accounts for about 48% of sales, has been slowing. As well, Thermo’s government and academic end-markets (accounting for 24% of revenues) are also facing governmental budget cuts.

Meanwhile, its acquisition of Life Technologies Corp. (NASDAQ:LIFE) is not all “great,” as part of Life’s revenues  (10% to 15%) are tied to U.S. government funding. Most notably the National Institute of Health, which is the nation’s medical research agency for improving health and saving lives, which saw its budget cut by 8% at the beginning of the year.

At the end of the fourth quarter there were a total of 32 hedge funds long the stock, a 7% increase from one quarter earlier. Billionaire John Paulson’s Paulson & Co. had the most valuable position in Life of $686 million, comprising 4.2% of its 13F portfolio (check out Paulson’s value picks). 

	Agilent	PerkinElmer	Thermo Fisher	Life
Forward P/E	13.5	13.4	13.2	14.3