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CONMED: Aggressive Accounting And Increased Debt Mask Its Problems

CONMED (NASDAQ:CNMD) shot up over 7% on April 15 after the company announced that it was up for sale. The company competes with other medical device makers such as Stryker (NYSE:SYK) and Covidien (COV). Those two companies and other larger device manufacturers could be possible acquirers of CONMED. However, the company's market valuation is already lofty for a deteriorating business with diminishing cash flow from operations - although its cash flow statement shows different. Further, the company's earnings and operating metrics have benefitted from the accounting treatment of its pension obligations and distribution agreement. The accounting cannot hide the economics forever; therefore, the clock is ticking on CONMED and its stock has little upside with tremendous

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