VCA Antech, Inc. (NASDAQ:WOOF)

Vestar is a leading international private equity firm specializing in management buyouts and growth capital investments with $7 billion in assets under management. The firm targets companies in the U.S. and Europe in five key industry sectors: consumer, diversified industries, healthcare, media/communication, and financial services. Vestar has been particularly active since 2006 with investments in the healthcare information services segment including its investment in MediMedia. Since the firms founding in 1988, the Vestar funds have completed more than 69 investments in companies with a total value of more than $30 billion. Vestar has operations in New York, Boston, Denver, Munich, and Paris. For more information, please visit Vestars website

This company has consistantly high ROE with a low valuation and considerable room to grow. Their market leading position in a fragmented market will help ensure further economies of scale as growth continues. The business model of acquiring new locations while growing labs internally seems an effective model. A result of this plan is the laboratory segment consititutes the primary source of excess returns at this point because of the significant goodwill in the animal hospital segment; over time they should be able to grow into the goodwill and increase overall ROE. Take advantage of temporary economic conditions to get into a company which should beat the S&P over time. This is one in my own portfolio.