Miller Tabak + Co., LLC's Healthcare research analysis covers a wide spectrum of the industry: Biotech, Hospitals, HMOs, Medical Devices, Pharmaceuticals and Services. Our approach to this vast universe of companies is to recognize that change is a constant, so we look for those companies that drive the changes:

• Young companies providing a new or innovative product
• An existing company adding a new product or service
• A company expanding its reach geographically
• A company that changes directions and develops a new and better way of doing business

Miller Tabak's healthcare strategy is superimposed on a macro analysis that realizes that the healthcare system has significant difficulty as U.S. healthcare costs are rising faster that GDP, coupled with healthcare outcomes remaining sub-optional and subject to wide variability. Companies that successfully understand and confront these problems are the ones we feel will most likely add shareholder value. We approach company valuation as if we were private market buyers, i.e., our returns should be far above the alternate uses of capital. We are value-sensitive, looking for the "right" price to pay for a longer-term revenue stream.

As we monitor products, services, trends, government and economic activity, Miller Tabak will recommend clients short certain companies that are overvalued, where fundamentals and/or management is poor and internal controls are lacking. We are careful about being certain something is amiss at a company before recommending a short, looking for signs that there was a failure to take alternative strategic measures or an inability to innovate. In the Healthcare equity sector, Miller Tabak recognizes that investing on either the long or short side can be highly risky, as so many factors and fundamentals determine stock prices and volatility. Our goal is to help clients make wise investment decisions, in spite of these inherent risks and concurrent volatility.