This has been a fairly boring market as we see low volume near the end of the year. I'm curious as to how 2010 starts off, as January's trading is usually anything but boring.
I went ahead and bought some Carefusion (CFN) today after a slight pullback. It is a name I have been following for a bit. They were spun off earlier this year from Cardinal Health, and I like the prospects for this company. You can read the profile of the company here. The bottom line is now that we have a clearer view on how health care reform will affect these companies, its a little easier to make decisions on their stock.
I'm a fan of spin-offs, as they often create opportunities for companies to realize value. Management is often motivated to get off on the right foot during their first few quarters on their own. I did a piece on spin-offs earlier this year, which you can read here.
The company is in a good industry that is growing. Their earnings are estimated to grow at a solid rate, and shares trade at 1.24x book value. David Einhorn's Greenlight Capital, one of my favorite investors, owns 8.7 million shares.
The stock isn't far from its high, but I think there will be some value unlocked in the coming quarters that the stock hasn't had a chance to show yet. I started with about a 1/3 position.
For most other names, I'm just sitting on my hands waiting to see if volume and/or volitility picks up when the new decade starts.
Disclosure: Long CFN.