Green & Gold Fund

1. Recommendation: Sell Stryker (SYK) Green & Gold Fund

2. Healthcare holdings • Abbott Labs (ABT) • Stryker Corp (SYK) • Healthcare Select ETF (XLV)

3. Rationale for Sale • Earnings revisions by analysts and management • Recent recalls / FDA limitations / potential litigation • Slower overseas adoption of products than anticipated • New CEO, no full time CFO • Better opportunities elsewhere • Healthcare indices have rallied this year, with only modest gains by SYK • Starting in 2013, the Affordable Care Act mandates a 2.9% tax on all revenue related to medical devices • Volatility associated with the election • Potential for investor backlash in lead up to 2013

4. Investment Information ~$600 gain 1 Year Price Graph

5. Analyst revisions Sales estimates EPS estimates Stryker CEO Kevin Lobo: “We expect market conditions to remain challenging in Europe...”

6. Recalls / FDA limitations • Rejuvenate hip implant recall / potential litigation • Wingspan stint for ischemic stroke recommended by the FDA only patients with no other options

7. Better opportunities in healthcare • Healthcare indices have rallied this year, with only modest gains by SYK • Starting in 2013, the Affordable Care Act mandates a 2.9% tax on all revenue related to medical devices • Volatility associated with the election • Potential for investor backlash in lead up to 2013

9. Management shuffle • Kevin Lobo named CEO on Oct. 1 • Currently no CFO, but former CFO Dean Bergy remains an advisor • Potential difficulties transitioning to new management

10. Stryker manufactures medical technologies. • Original thesis: Stryker is a leading medical technology manufacturer with potential for expansion • Rationale for sale • Management shuffle • Disappointing results • Recalls, FDA notices, potential litigation • Regulatory concerns make medical devices less appealing