Gregory Vousvounis
Value, growth at reasonable price, long-term horizon, long only

Hill-Rom: A Good Company But With A Poor Risk/Reward Profile

Hill-Rom (NYSE:HRC) is a manufacturer of tools and equipment for handling, monitoring and accommodating patients in hospitals, clinics and other patient-caring/treating facilities.

Hill-Rom's products include a wide range of beds with patient support systems, positioning devices for surgical operations, surgical disposable products like scalpels and skin markers, movable medical equipment and various healthcare furniture. Hill-Rom has a strategy similar to GE's and is the leader or the number two in all of its major markets.

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Hill-Rom's revenue is essentially part of the capital expenditures healthcare facilities make every year. This makes Hill-Rom's revenue volatile and very susceptible to recessions. In the latest crisis, Hill-Rom's revenues dropped more than 30%, from $2 billion in 2007 to...

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