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Pair Trades: Bard and Intuitive Surgical

Alan,
I don't think the "automobile" analogy is pertinent here. If it were, BCR would not be anything more than an OEM supplier of, let's say, "braking" systems - but, certainly not a complete car. They make a wide array of fine products(from catheters to stents to sump tubes to shunts, etc.) In point of fact, why not put them with other companies a little bit more in line ; such as, THOR, OFIX, ICUI, or AMMD?


On May 11 03:38 PM Alan Brochstein wrote:

> Great points - note that BCR has net cash. Also, we are talking high-end
> toyota vs lexus, not ford pinto to rolls royce

Pair Trades: Bard and Intuitive Surgical

Alan,
Interesting stuff. BCR is certainly a fine company, generally good metrics - I would voice a concern on the content of fund ownership (now at about 37%) , I prefer the range of 15%-30%. Also, have a preference for zero debt. I don't know why POT or MOS should even enter into this discussion - totally different arena. I do not think that buy & hold is a particlarly good strategy, nor is so-called diversification. What about raising cash during certain periods? I concur with the aspect of never falling in love with any company or it's ticker symbol. One must recognize, however, that ISRG is markedly different from BCR - zero debt, twice the inventory t/o ratio, 4.5x the earnings growth potential, a very powerful product offering, strong patents, and recurring revenue, etc.

Intuitive Surgical: Medical Device Stocks Look Oversold - But Not Recession Proof

To Dave: Your analysis seems flawed:
NTRZ is a "penny" stock trading around .37 cents. Dismal stats!
HW is trading around $9.00 , has debt of 65%, declining sales, eps is minus 73% for 2008.
Where are the fabled stories on these two stocks? Neither one can distinguish itself because of a patent, a product, or any competiive edge.
Nor is there any consistent pattern of earnings & sales growth. If there is a moral imperative here, it would seem to be - do not buy cheap stocks.
Mr. Johnson is correct on one point, one should never fall in love with any stock! However, his "groupie" analogy is simply a "cheap" shot at those who do not agree with him.

Intuitive Surgical: Medical Device Stocks Look Oversold - But Not Recession Proof

To borisB & Mr. Johnson: Suggest you two climb into the same lifeboat & set sail for a trifle more education! A suggested itinerary might be; up the alimentary canal of the tidy pachyderm (careful - do not make the oft committed mistake of judging the size of the creature by the size of it's tail!).
Then let us know when you have completed this stage of your journey (please keep a count on the number of times you jibe, get knocked down and, be-calmed) and we'll have some additional suggestions as to where you might go next. Be civil at all times!

Intuitive Surgical: Medical Device Stocks Look Oversold - But Not Recession Proof

to user 278265 - AMEN! I concur, Mr. Johnson is typically way off in his prognostications, and he could not wait to launch this little diatribe. Let's see what the next day or two brings, especially after ISRG reports earnings on the 16th.