JBL: Big Dreams and Bigger Dollars

On a very grass-roots level of due diligence I called my sister, Sylvia Sims, who teaches school in Sweetwater, Texas. She told me the service provided by Educate is invaluable to the education system.

This is a boring company. There's nothing fantastic about its numbers; it just continues to grow. I think it is a company you should buy. I do not currently own shares of Educate, but as a guy who speaks and understands Presidential English, I would enjoy owning an education play.

News, News and More News

The State of Maryland just made one of the worst decisions for big business possible. It voted to override the veto of Gov. Robert Ehrlich Jr. on the so-called Wal-Mart (WMT Quote) Bill. The bill states that companies with more than 10,000 employees have to pay 8% of payroll toward health care.

This bill is flawed on so many levels, but on the one that affects investors is that it hurts business. I recommended Wal-Mart in mid-October; but, with this ruling and lower-than-expected Christmas sales, the stock is now basically the same price as when I recommended it. I still own my shares of Wal-Mart, and I am not selling them. However, I would not be a buyer here until we see how this plays out nationally. So far it is great news for unions, bad news for business.

Everybody Wants a Bad Company

I also recommended Boston Scientific (BSX Quote) in October, and it is now up just slightly due to concerns over a potential bidding war with Johnson & Johnson (JNJ Quote) for Guidant (GDT Quote).

J&J first made a bid of $76 per share for Guidant, and then lowered it after a series of recalls of pacemakers and defibrillators. J&J lowered its bid to $63. Boston Scientific jumped in and the bidding has begun for a troubled company. The bids now stand at $73 a share by Boston Scientific and $68 a share by J&J.

Boston Scientific and J&J both want a stake in the $10 billion market for devices that help keep heart beats normal.

I like Boston Scientific with or without the acquisition. I own shares of the company and plan on keeping them.