Brad Ferris

Steering Clear of Stryker; Larger Medical Device Cos Are Better Positioned

Stryker is diversified in about a 60/40 split between their large Ortho products & other medical supply/device products. They are still largely dependent on Orthopedic implants for the majority of their business and in an economically sensitive environment companies (hospitals) may be more conservative in their capital expenditures for medical stretchers, endoscopy supplies or OR materials.

The point I am making is no company is economically insensitive and when evaluating Stryker an investor needs to be aware of all revenue sources for the company and the economic challenges each segment faces.

Steering Clear of Stryker; Larger Medical Device Cos Are Better Positioned

Captainess,

I like your reference to stocks/industries as economically sensitive. I often refer to them as "Recession Resistant" rather than the frequently used "proof". I wrote about this on my blog a few months ago also. Proof gives the perception that something is invincible and no company has that luxury (to my knowledge). As great as a moat may be, it is still susceptible to economic pressures from costs, revenues & inflation.

Steering Clear of Stryker; Larger Medical Device Cos Are Better Positioned

Thanks for the comment andyn. I still think the company will post a profitable 2009, but with expectations high I feel the market could possibly punish the stock if it's not able to meet its targets.

America's New Stimulus Package: Looks Good, But Is It Enough?

No...it won't be enough. For the simple reason that in part they're still attempting to stimulate consumption and bad companies need to die. It's really that simple. A WFC or JPM needs to come in & buy Citi for cents on the dollar and acquire its deposits and functional business segments. There's just far too much financial supply and when we see meaningful failures I think that is when stimulus begins to work. Interest rates are already historically low. Consumers and businesses are conserving cash because their cost/ability to secure financing is so high.

General Electric: Genuine Risk of Collapse?

I don't think you'll see it fail, but I certainly expect changes to come & significant ones at that. The management of many US companies can certainly raise questions about the merits, abilities & honor that many are lacking. We need leadership, not excuses and the non-financial units of GE are spectacular growth vehicles. They simply need a management team that focuses on thos competencies and stop using debt to expand this business. Lean & mean will be the new GE motto I believe in 2009-2010.

A Buy & Hold Forever Dividend Stock Portfolio

The only other stock I would suggest looking at (for Utilities) would be EXC. But a good diversified portfolio of high quality stocks otherwise!

Dow 'Dirty Dozen' Offers High Yields and Good Value

PFE & GE would be my top picks from that group. I would not count on GM being a "yield" investment for quite some time due in part to the risks they face on many fronts. Chronic mismanagement vs. yield? I'll avoid that stocks as a value trap despite the upside many analysts and investors continue to see in that company