Condor Capital - Investment Advisor

Welcome to the November issue of Condor Monthly!

In "What's New at Condor Capital,” we announce the addition of the “Condor in the News” section to our website. In "From the Portfolio Manager" this month, we discuss the recent addition of IDEXX Laboratories to Condor's Large Cap Growth strategy portfolios. In this month's "Financial Planning Corner," we examine and explore the importance of designing a retirement income plan.

What's New at Condor Capital

We have added a “Condor in the News” section to our website. This section will have two parts, one for “Media,” and another for “Publications.” Please be sure to visit it frequently for any recent updates and/or additions.

I was recently featured on the Fox Business Network show, "Happy Hour," on November 27^th, 2007. This video is now posted in the Media section of Condor in the News.

Andrew Novick, our Vice President of Client Services, was also recently featured in the Star Ledger on November 4, 2007, in the "Get With the Plan”column of the Business Section. This article is now posted in the Publications section of Condor in the News.

From the Portfolio Manager

IDEXX Laboratories (IDXX) is a recent addition to Condor's Large Cap Growth strategy portfolios.

IDXX offers a large range of diagnostic test kits, lab equipment, and instruments. It also offers testing services for livestock and for use in animal hospitals. Its veterinary laboratory facilities are among the largest in the nation. Equipment, consumables, testing, and consultation are performed. IDXX is well positioned to benefit from two key trends because more than 80% of its total revenue comes from the pet-supply market. First, pet ownership continues to grow, with 63% of U.S. households owning pets in 2007, compared with 56% in 1988. Second, pet owners have demonstrated greater willingness to spend more, having doubled spending on pet products and services in the last decade. IDXX is planning to launch its next-generation chemistry analyzer to animal hospitals in early 2008, which should spark a round of upgrades among current customers.

IDXX has a strong franchise in testing applications for both biohazard and mass civil defense, as well as veterinary medical applications. Veterinary applications for cattle, hogs, chickens and turkeys are growing strongly in terms of immediate and rapid test results as more animal foods are factory processed and packaged. The recent epidemic of infections from imported and domestic tainted foods has mandated increased testing both at production sites and upon U.S. entry. Infections have included Hepatitis B from Central American fruits, Salmonella from meats, E.Coli from a variety of foods, and Mad-Cow. While food testing represents just 8% of revenue today, it is expected to grow rapidly due to these concerns.

Another smaller but briskly growing segment of IDXX includes its water-testing business, representing 8% of revenue. Local municipalities are often required to routinely test water supplies for dangerous levels of bacteria. IDXX offers a unique test that can detect two of the most common bacterial contaminants, which is easier and faster to use than traditional testing methods. This has allowed the firm to capture more than 60% of the water market.

Since international sales represent 35% of IDXX’s total, the company remains diversified and is currently benefiting from a lower U.S. dollar.

We believe IDXX is an attractively valued growth stock. After growing earnings by about 13% this year, we see earnings accelerating to the high teens to low twenties range through 2010. IDXX’s forward P/E based on estimated 2010 earnings is 23x

Financial Planning Corner

Designing a Retirement Income Plan

There are more than seventy-eight million Baby Boomers (those born between 1946 and 1964) in the U.S. and many will be retiring over the next decade. Unfortunately, not enough are taking the necessary steps to prepare for retirement. This is especially troublesome given the increase in life expectancies and continually rising costs. Certainly, Baby Boomers will face a long, expensive retirement. As a fee-only investment advisor, Condor Capital can help. Not only do we provide ongoing investment management services, but we can help with a full range of retirement planning issues. The emotional side of retirement planning can be equally as important as the finances.

Taking some liberty from a study on the retirement income planning process we recently received from Oppenheimer Funds, we suggest taking the following steps:

1.   Envision Your Ideal Retirement
2.   Determine Retirement Income Needed
3.   Evaluate Financial Resources
4.   Take Steps to Implement or Adjust Retirement Objectives
5.   Manage Risks to Minimize Disruption to the Plan

Please keep in mind that retirement planning is not a one time event. It needs to be updated from time-to-time, especially after any type of major lifestyle change. If you would like assistance with constructing a solid retirement income plan and financially fulfilling the goal, please do not hesitate to contact us.

If you know of any friends or relatives that are entering a new phase in their lives, please consider referring them to Condor Capital.

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