andyn

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

Agree...SYK is heavily dependent on ortho products as its cash cow and that will slow down massively in the next 2 years.
They are trying to diversify into other sectors like endoscopy, hospital comm systems but that doesnt bring in the kind of margins to keep the profit going at the levels they wanted i.e. earnings growth of 20%.
One way for them to increase profits might be to layoff workers and that might occur in 2009. The stock might languish at these levels for the next 2 years before demand picks up or management takes some aggressive action.