1. Extra Strength Solutions® David “Sibo” Wang Nelson Zhu

2. Company Profile Medco operates the nation’s largest mail- order pharmacy operation. Also works with local pharmacies Ranked in S&P 500 as 54th Averages 500 million prescription a year $42.5 billion in revenues $630.2 million in net income

3. 3-month period

4. 6-month period

5. 1 year period

6. Strong Upward Trend Increasing parabolic path Good 2 touches on a linear trend line - Swing-Trade- Stocks.com  1) mid August  2) late October

8. Acquisition of PolyMedica Bought Accredo Health for $2.3 billion in 2005  Focuses on complicated medicines to address chronic, life-threatening diseases. Acquired PolyMedica Corp (PLMD) for $1.2 billion to expand diabetes care services http://www.youtube.com/wat ch?v=lh_xzTECgjE

9. Profile (cont’d) Acquired Polymedica (PLMD) on August 28th, causing PLMD stocks to soar PLMD is a supplier of diabetes testing kits, expanded MHS’s horizons 14,800 employees

10. Acquisition of PolyMedica Diabetics make up 5 percent of the U.S. population, but account for more than 15 percent of total drug spending Already collaborated with positive results The deal is expected to add slightly to Medco's earnings in 2008.

12. Why Pharmaceuticals? 1) A "must-repeat" purchase, high- margin business.  no matter the economic situation 2) Favorable world demographics.  65+ years people use 3 - 4 times the prescription drugs of 30 year olds  The world population is aging. In the US, the group of people 65 or older will expand 17% by 2010, increasing the U.S. market beyond the current $105 billion level 3) Feel Good Factor  Investing in company that does good in the world makes you feel warm inside 4) Pharmaceutical company shares rose - The Associated Press  End of October 2007after the U.S. central bank's rate cut provided a small boost to the sector.

13. Why Medco? Medco buys medicines for employers, unions and insurers  Won’t be hurt by a fallback of one drug Sales have risen for the past seven quarters Analysts expect new generics coming on the market to allow Medco to keep growing for several more years – seekingalpha.com

14. Bibliography http://www.rttnews.com/sp/todaystop.asp?date=11/01/2007&item =44 http://www.chron.com/disp/story.mpl/ap/fn/5265828.html http://seekingalpha.com/article/27804-rob-black-s-healthcare- stock-report http://www.ibtimes.com/articles/20070828/medco-polymedica- acquisition.htm http://www.swing-trade-stocks.com/draw-trend-lines.html http://66.98.181.12/newsources/Nov1604a.htm http://www.fool.com/news/indepth/pharma/content/pharmastocks. htm http://seekingalpha.com/symbol/mhs http://www.chron.com/disp/story.mpl/ap/fn/5261804.html