Topic: Growth Stocks

PHILIPS ELECTRONICS N.V. ADRs $28

PHILIPS ELECTRONICS N.V. ADRs $28 (New York symbol PHG; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 917.1 million; Market cap: $25.7 billion; Price-to-sales ratio: 0.9; Dividend yield: 3.1%; TSINetwork Rating: Average; www.philips.com) had a deal to sell 80.1% of its Lumileds subsidiary, which makes lightemitting- diode (LED) components, to a Chinese firm. However, U.S. regulators blocked the sale.

As a result, Phillips now plans to sell shares in its entire lighting division, including Lumileds, to the public. That could raise $6 billion, and set the stage for a possible spinoff. It would also allow the company to focus on its health care products, including X-ray scanners and ultrasound systems, and consumer goods such as electric shavers and coffee makers.

Philips is still a buy.

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