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TWST: Since you are a generalist who looks at technology stocks across the board, I’d like to begin by asking you if there is a case for investing in technology stocks at this particular time.

Mr. Virgile: I may be such a generalist, but there is no general answer to your question. There are some technologies which are doing quite well. More of them are not. There is no general answer.

TWST: What are some of the sectors that you feel are worth investing in now?

Mr. Virgile: One that is doing the best is medical supplies or medical equipment. We call it “medical supplies,” but it’s really equipment rather than bandages.

TWST: Why is this a growth sector?

Mr. Virgile: Because it’s substantially independent of the economy, which has not been vibrant, so it stands on its own. And, with an aging population, we have more need for these devices.

TWST: What are some of the companies that you’re attracted to and the reasons why?

Mr. Virgile: The one I like best happens to be one I no longer follow. Perhaps I should explain: I no longer follow it because I liked it so well that I wanted to buy the stock, and we’re not permitted to cover companies whose stock we own. That one happens to be Diagnostic Products (DP). Let’s look at some of the others that are doing all right. Biomet (BMET) is doing well. CONMED (CNMD), ResMed (RMD) and St. Jude Medical (STJ) are all good companies. And one I like extremely well is Varian Medical Systems (NYSE:VAR).

TWST: What is attractive about Varian Medical Systems?

Mr. Virgile: It dominates the market for radiation treatment of cancer. Varian has new equipment; they have had it for a couple of years, but it will take a decade before the market is sated with it — and this company is number one by far.

TWST: What are the catalysts, the growth drivers that make this sector appealing to you right now? You mentioned demographics, but there must be other, more particular factors.

Mr. Virgile: Yes. I think there is a greater recognition of the importance of medical treatment. But let’s talk about Varian because it’s a particularly good example. Its latest equipment is more successful in treating cancer, particularly prostate cancer, than the previous equipment was. So as people become aware of that, it stimulates business for that company.

TWST: What particular areas are you avoiding at this time?

Mr. Virgile: I don’t avoid anything. We’re a very systematic publication and we never stop following a company until it goes out of business, is merged or the stock gets to be less than $1 or so, so we feel we shouldn’t follow it anymore. But from a publication point of view we don’t avoid anything.