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Cisco Systems, Inc.

designs, manufactures and sells Internet protocol (IP)-based networking
and other products related to the communications and information technology (IT) industry,
and provides services associated with these products and their use. The Company provides a
line of products for transporting data, voice, and video within buildings, across campuses, Comment from my 2008 list
11 CSCO Cisco Systems Inc $18.80 $30.13 $37.21
and around the world. Its products are designed to transform how people connect, Super numbers all round
communicate and collaborate. Cisco Systems, Inc.�s products, which include primarily
routers, switches, and products that the Company refers to as its technologies, are installed
at enterprises, public institutions, telecommunications companies, commercial businesses
Microsoft Corporation develops, manufactures, licenses and supports a range of software
products for computing devices. The Company's software products include operating
systems for servers, personal computers and intelligent devices, server applications for
distributed computing environments, information worker productivity applications, business Comment from my 2008 list
12 MSFT Microsoft Corp $24.04 $32.17 $43.50
solution applications, high-performance computing applications and software development good margins, good profits
tools and video games. It provides consulting and product support services, and trains and
certifies computer system integrators and developers. Microsoft Corporation sells the Xbox
360 video game console and games, the Zune digital music and entertainment device, PC
Walgreen Company (Walgreens) is principally a retail drugstore chain that sells prescription
and non-prescription drugs, and general merchandise. General merchandise includes,
among other things, beauty care, personal care, household items, candy, photofinishing,
Comment from my 2008 list
greeting cards, convenience foods and seasonal items. Customers can have prescriptions
13 WAG Walgreen Co below average FCF growth in FCF but margins are $29.34 $24.42 $52.74
filled at the drugstore counter, as well as through the mail, by telephone and via the
rock solid
Internet. As of August 31, 2008, Walgreens operated 6,934 locations in 49 states, the District
of Columbia, Guam and Puerto Rico. Total locations do not include 217 convenient care
clinics operated by Take Care Health Systems, Inc. (formerly known as I-Trax, Inc.), a
Gilead Sciences, Inc. (Gilead) is a biopharmaceutical company that discovers, develops, and
commercializes therapeutics in areas of unmet medical need. The Company has United
States and international commercial sales operations, with marketing subsidiaries in
Australia, Austria, Canada, France, Germany, Greece, Ireland, Italy, New Zealand, Portugal, Good margins and returns but inconsistent. FCF and
14 GILD Gilead Sciences Inc $46.83 $50.42 $60.85
Spain, Switzerland, Turkey, United Kingdom, and United States. Its commercial team earnings are also inconsistent
promotes Truvada, Viread, Emtriva, Hepsera, AmBisome, Letairis, and Flolan through direct
field contact with physicians, hospitals, clinics, and other healthcare providers. Gilead�s
corporate partner, Astellas Pharma, Inc. (Astellas), promotes and sells AmBisome in the
MasterCard Incorporated (MasterCard) is a global payment solutions company that provides
a variety of services in support of the credit, debit and related payment programs of over
24,000 financial institutions and other entities that are its customers. Through its three-
tiered business model as franchisor, processor and advisor, the Company develops and
15 MA MasterCard Inc Outside circle of competence $165.84 NA NA
markets payment solutions, process payment transactions, and provides support services to
its customers and, depending upon the service, to merchants and other clients. It manages a
family of payment card brands, including MasterCard, MasterCard Electronic, Maestro and
Cirrus, which it license to its customers. The Company conducts its business principally
Thermo Fisher Scientific Inc. (Thermo Fisher), incorporated in 1956, is engaged in serving
science. It provides analytical instruments, equipment, reagents and consumables, software
and services for research, manufacturing, analysis, discovery and diagnostics. The Company Marings, growth and return metrics are good. FCF
Thermo Fisher Scientific operates through two segments: analytical technologies and laboratory products and growth has been very strong but wonder whether it
16 TMO $40.39 $39.76 $40.75
Inc services. Analytical technologies segment includes pharmaceutical, biotechnology, can be sustained. Increased margins in FY 2008.
academic, government and other research and industrial markets. Laboratory products and Sales becoming flat.
services segment offers combination of products and services that allows its customers to
engage in their core business functions of research, development, manufacturing, clinical
Baker Hughes Incorporated (Baker Hughes) is engaged in the oilfield services industry. The
Company is a supplier of wellbore related products and technology services, including
products and services for drilling, formation evaluation, completion and production and
Not a steady generator of FCF. Too many ups and
reservoir technology and consulting to the worldwide oil and natural gas industry. The
17 BHI Baker Hughes Inc downs for a large cap, CROIC is paltry, great $36.45 $46.65 $130.00
Company operates through two segments: the Drilling and Evaluation segment, and the
earnings growth but can't convert it to cash
Completion and Production segment. In April 2008, the Company acquired two reservoir
consulting firms, Gaffney, Cline & Associates (GCA) and GeoMechanics International (GMI).

Becton, Dickinson and Company (BD) is a medical technology company engaged in the
manufacture and sale of a range of medical supplies, devices, laboratory equipment and
Has consistently produced plenty of FCF but FCF
diagnostic products used by healthcare institutions, life science researchers, clinical
growth has been minimal, very good CROIC of 15%,
laboratories, industry and the general public. The segments in which the Company operates
18 BDX Becton Dickinson & Co steady growth in shareholders equity/book value, $70.70 $82.04 $138.00
include BD Medical, BD Diagnostics and BD Biosciences. On May 12, 2008, the Company
stable rising margins, debt to equity is consistently
acquired Cytopeia Inc.
dropping, sales has been increasing.

Bristol-Myers Squibb Company (BMS) is engaged in the discovery, development, licensing,
manufacturing, marketing, distribution and sale of pharmaceutical and nutritional products. FCF is positive most of the time but inconsistent as
The Company had two segments: Pharmaceuticals and Nutritionals. The Pharmaceuticals in not able to raise it steadily with some big losses
segment is made up of the global pharmaceutical and international consumer medicines in between, average return metrics, normalized
19 BMY Bristol-Myers Squibb Co $20.24 $17.11 $29.94
business. The Nutritionals segment consists of Mead Johnson Nutritionals (Mead Johnson), earnings is also low and inconsistent, margins and
primarily an infant formula and children�s nutritionals business. In January 2008, the sales unstable. I wouldn't consider as a retirement
Company completed the divestiture of Bristol-Myers Squibb Medical Imaging (Medical stock.
Imaging) to Avista Capital Partners L.P. In June 2008, BMS acquired Kosan Biosciences, Inc.,
Carlisle Companies Incorporated (Carlisle) is a holding company for Carlisle Corporation, and
its wholly owned subsidiaries. Carlisle is a diversified manufacturing company, which
manufacture and distribute a range of products. On January 25, 2008, the Company
acquired 100% of the equity of Dinex International, Inc. (Dinex), a supplier of foodservice Comment from my 2008 list
20 CSL Carlisle Companies Inc $24.79 $35.27 $70.00
products to the healthcare and other institutional industries. On April 28, 2008, the low FCF, CROIC , consistent margins,
Company acquired 100% of Carlyle Incorporated (Carlyle), a provider of aerospace and
network interconnection solutions.