Recap of Saturday, Oct. 26:Polaris Industries; Graco

Our panelists give you the scoop on all the inside business information before you hear it anywhere else in The Informer segment:

David Asman: Dennis, let's start with you.  Tell us about the cover story of the latest Forbes issue.

Dennis Kneale, managing editor: It's about an experimental lung cancer pill.  The company that makes it is Astrazeneca (AZN).  Now this pill is still experimental and the FDA has not approved it.  But they think that even though the data is a little mixed, there have been so many miraculous cases like the case in our story that they may go ahead and approve it.  And they will.

David Asman:  Okay, we have to move on.  Let's go to Victoria Murphy.  You've got news on the software industry.

Victoria Murphy, senior reporter:  The software industry is in a desperate need for a shake out.  Companies like Compuware (CPWR), Red Hat (RHAT) and Tibco (TIBX) have had lagging sales.  Eventually consolidation has to happen.  But even companies like Microsoft are holding back.

David Asman:  Chana, McDonald's (MCD) is coming back?

Chana Schoenberger, staff writer:  They never really went away.  They have 43 percent of the fast food company.  Their earnings have been down for the last seven of the eight quarters.  They want to save about $5 million and not open as many new restaurants.  They're going to spend a lot on ads to boost promotion and more on their existing stores.

David Asman:  So look to McDonald's to make a comeback.  Now, Jonathan Fahey, you're looking at the bonds not the stocks at Ford?

Jonathan Fahey, staff writer: Ford's stock has fallen by more than half since last year.  And it's going to take a lot for it to get back to where it was.  But when you buy Ford bonds, you're betting that the company won't go bankrupt.  Buying the bond will give you a good yield on less amount of money.  You can get a bond from any broker or even on the Schwab website.

Makers & Breakers

David Asman:  Our guest stock picker is Bob Mitchell of Conestoga Capital Advisors.

Polaris Industries (PII)

Bob Mitchell: MAKER

Polaris Industries is a fantastic company.  It's got a strong management team and it's shareholder oriented.  And it's innovative in terms of bringing out new automobiles.

Bill Baldwin, editor: BREAKER

I think the environmentalists are going to be all over this company because the jet skis making a lot noise.  And I think the tort lawyers are going to be all over it because of the liability when a little child bumps into a tree touting one of the over-powered go carts.

Mike Ozanian, senior editor: BREAKER

Sales from this company have been low and to get money out the door they've been bank rolling the dealers who sell it.

Bob Mitchell:  These guys have a diversified revenue stream and I think you're wrong on the litigations.  The personal watercraft is the business most effected by litigation and that's only 4 percent of their business.

Graco (GGG)

Bob Mitchell: MAKER

Graco makes a lot of lubrication fluid, pumps and valves.  This company has $100 million in cash flow and will produce significant cash flow over the next two years.

Mike Ozanian, senior editor: BREAKER

I like this company but I don't like the stock.  For the last three years, the stock has done better than three times the market and I don't think it can sustain that pace.

Bill Baldwin, editor: MAKER

I like manufacturers that don't have competition from the Far East.  These big goofy gadgets and pumps and not subject to too much competition.