ryortho

Stryker: Diversify into Healthcare

Nope, he's missing the boat. SYK's biologics aren't a factor. it's the basic demand for hip, knee and spine implants. THAT demand is strong and rising. Plus cash flow is outstanding. First baby boomer applied for social security this year. Key to stryker is to buy its equities as cheap as you can. The valuation earlier this year was like buying dollars for 60 cents. hip, knee, spine + hospital beds. SYK has the size and synergies to rise with demand and to maintain margins. Finally, in an economic downturn, demand for new hip, knee or spine surgery rises since insurance (COBRA) extends past lay-offs. Demand falls when economies are recovering since people are getting back to work. SYK is a buy, but not for the reasons this guy trotted out.

Can Exactech Keep the Momentum Going?

One more factor: Exactech's float is the smallest in percentage terms than any other orthopedic company. Small float, rising expectations, it does add up to continued high valuations and strong price. Disclosure: I don't own any EXAC.