It seems that the "Ace" products (bandage wraps
etc.,) is on the sale block. Any BD employees on this site that can confirm this?
People have been asking why this stock dropped
after the recent analyst meeting. Simple answer is that wall street did not like the forecast for FY 2002. Remember that the quality of earnings for FY 2001 was not good. Too much below the operating line stuff, like Brazilian tax credits, and sale of assets.
BDX continues to suffer a credibility problem with wall street. This goes back nearly four years. BD will have to deliver before wall street gets hot on this stock. Predictions of great things to come in the future will no longer wash.
How long will the institutional investors stick with a stock with low yield, and flat market appreciation?
Thank you and I do agree with your sentiments around the "means" of the BD management and that is one of the areas of my discontent with the BD organization. We can agree to disagree whether BD is a stable performer or not. Are there better performers, yes, but there are also a lot of worse performers.
Have a good holiday, whatever it may be.
There are three BD plants in Nebraska. The Columbus plant does differ in products manufactured by the other BD plants in Nebraska.
Your original question about why would BD
build a new plant and lay off employees is something only the upper echelons can answer. I think they need to think for themselves more and get rid of most of the high priced consultants they use to do their thinking for them. I think you would see a much better performing company.
oldwillie65.....when I am wrong I apologize....in this case I was wrong and you do deserve an apology. I posted that post by accident. I was reviewing what I had written and when I realized that the tone of my message was very harsh. I was trying to get back in and re-write that post when I hit the post button by mistake. I am very sorry that it went out like it did. The only thing that I disagree with you on is that I don't feel that BD is a stable performer in the current market climate. They maybe used to be a pretty reliable stock but with the current management mentality of laying off employees instead of getting rid of those who are responsible for creating that situation in the first place. It seems when companies begin to experience some lean times they make those who are only trying to do the things that management told them to do,suffer by laying off those people. To me this is all wrong and should be done only as a last resort by a company in distress. I don't really feel that this company is in as much distress as they think they are,but I do believe that current management needs to be what gets re-shaped and not cutting down on the work force. It's backwards punishment in my opinion.
Again,my sincerest apologies for my original post.
If you read into my message, I was not recommending anything, nor was I on my high horse. I actually started out by stating that I did not support many of BD's management moves and philosophy. The only recommendation I truly made was to stop thinking BD was going to help recoup big losses that the geniuses who keep posting on this board may have experienced with other wise investments, and to look at BD as what it truly is a "stable" performer with respect to the Market as a whole.
BDX is buiding a new plant in Columbus Nebraska where they already have a facility that employs over 1000. Why would they lay off people and continue to build a plant for an additional 600 employees? Does Columbus do something or make a product the other plants don't. I am looking for some advice. I have $20,000 to invest and BDX at 32 or below looks like a great value.
I don't know about ACE but there are plans to spin off certain businesses. The focus has shifted to sharps protection; sales have doubled in one year for certain safety products.
Analysts would have been stupid to not have seen these results coming. Then again, my professionally managed portfolio is only worth 30% of its initial value. BD doesn't look too bad in the current light. Just look at the "max" graph.
I made $10 per share during the last "cycle". Bet I make another $10 per share this time too.
Looks like the truth concerning Senior Management hit a nerve. Interesting to note that no one challenged the facts. Thanks for the spell check. Classic BD...focused on non-essentials...always underperforming.
The true Broken Dickinson strategy is emerging...Shrink your way to success. Sell off and shrink to double digit earnings!!! This will keep them busy for months to come!!!