Unfortunately we have scaled back Luminex (LMNX) to only a 0.1% stake - this was a name that had fallen 50% straight in a month and we were buying in the mid $14s early last week and then flipped out in mid $18s a few days later. Now a week later it's gapped up to mid $21s. Again, showing this market is indiscriminate in it's punishment - good, bad, or indifferent is getting sold off - Fluor (FLR) is another great example today of a company executing each and every quarter but beaten senseless.

Anyhow I have been very pleased with the vast majority of our holdings in terms of their business updates this earnings season - they are doing very well in a very tough environment, but their stocks have been trashed just as much as companies doing poorly. So I'm happy with the stock selection while frustrated with the fact that stock picking and doing homework has meant nothing to performance. I eagerly look forward to an era where "student body left" trading is over with, and companies with superior prospects get rewarded. I continue to favor these high growth, smaller health care companies - and Luminex is yet another in the "razor and blade" model - sell the blade once, sell the razors forever; my favorite model. Here are Luminex's numbers. Analyst's estimates were $27.8M revenue and $0.03 EPS - this appears to be a substantial beat. No major long term debt on the balance sheet either.

• Consolidated total revenue of $28.9 million, representing a 49 percent increase year-over-year.
• Net income of $3.2 million for the third quarter of 2008 and $1.0 million of net income year to date. Net income for the third quarter of 2008 was $3.2 million, or $0.08 per share, compared with net loss of $1.8 million, or ($0.05) per share, for the same period last year.