Becton, Dickinson and Company Message Board
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Why the drop today???
Already off 5% and still falling. I can't find any news (but I bet it will appear sooner or later).
Anyone know what's up?-
This is not about BDX, but about the sector. BDX and several others are well run companies. This is a great buying opportunity.
- 1 Reply to nyuknyuk22
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Well, I started a thread which has ended up with real substance...much appreciated everyone.
I check - here is S&P's recent track record on BDX...
01/28/09 - 9 AM - reaffirms "strong buy" at $74.15
01/28/09 - 11 PM - cuts to "buy" at $71.01 ("currency risks")
04/23/09 - cuts to "hold" at $63.43. Note that this was after most of the decline, so I think the sector issues were just amplified by the S&P downgrade and emphasis on currency issues (which impact the entire US medical industry since we are the world's product leaders....at least until the industry is nationalized)...
BTW - Ever wonder why they didn't do the reverse..tell us to sell at $74 and to buy at $63..??? I think they are largely trend followers to tell the truth.
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BAX, BDX, ABT, JNJ, and BCR all very near 52 week lows, all below 50 day or 200 day moving averages, all down last week anywhere from 5% to 9%. This is not about BDX, rather the entire sector. All these organizations doing well. BDX very agressive on reducing cost while consistently improving quality and service. Another good quarter will be reported this coming week. Entire sector will rebound nicely along with BDX.
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I think the TMO April 23, 2009 news may have come as a shock to the sector - see http://www.tradingmarkets.com/.site/news/TOP%20STORY/2287281/
or google "Thermo Fisher Scientific Q1 profit declines; revenues decline 12%; slashes FY09 Outlook - Update"
Read also http://www.glgroup.com/News/Potential-markets-for-new-Roche-MRSA-test-37326.html issued April 13.
And then note Cepheid (cphd) up 20% today (Fri Apr 24)
Their 1st qtr results and commentary (in which they announce they "have submitted....Clostridium difficile assay to the FDA for 510(k) market clearance") are at
http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/04-23-2009/0005012125&EDATE=
Let's hope for good news April 28, and evidence of vigorous sales & marketing efforts. -
I just checked banc of america. They have the change. S&P now has BDX at 3 stars. Rather painful, especially 4 days before earnings.
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I really think that today's drop is due to the TMO earnings announcement, which was a miss.
Bill- 1 Reply to flyersnbears
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Answer: S&P lowered its rating this morning from buy to hold, with a lower earnings estimate and substantially lower price target (70), still a decent return on a quality, recession-resistant stock. I have been adding to my position.
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I sure can't figure it out. Possible profit taking and they'll never get back in. This stock has 5 star ratings, 10% earnings growth, 50% debt to equity and has increased divey for 36 years!!!!! Stay with it or buy more because this sotck DOUBLES !!!!
- 1 Reply to hedgecutter10
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I appreciate the comments.
I look at Bard, down sharply, which I don't own (yet)...then BDX down, DXG also down a lot today (not to mention the underperformance of JNJ) and wonder if the financial markets have just lost their minds ----
Or is eveyone worried about how health care in the US might be changed and that the change will hurt the performance of these companies..??
When the budget was released in Feb, all the medicals (including my GILD and CELG) got hit because of that fear, but I thought/hoped that it had abated somewhat.
Any thoughts on that?
[makes me glad I also own restaurants - check out YUM today]
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I haven't seen anything either, but earnings are reported next Tuesday; maybe some pre-selling in anticipation.C.R. Bard reported earnings yesterday, and the stock has been under significant pressure since then. Currency exchange issues affected earnings and outlook. Their business is similar to BD's, so the market seems to be anticipating the same message Tuesday.
- 1 Reply to nutmegman58
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Good observation, thank you for that. That's the most credible explanation for the drop that I've seen.
On a day like today, I think that the market is doing a very poor job of being "forward-looking." Briefly looking over Bard's report, I don't see anything that bodes poorly for the future. The currency exchange issue is particularly trivial to me. That the stronger dollar had an impact on earnings gives me no pause at all. More likely than not, the dollar is going to weaken as the year progresses, so I can't see a strong dollar being a problem for companies in the upcoming quarters.
And you just aren't going to get around a need for healthcare staples.
I added to my BAX position today. They got hammered yesterday and they were getting hit this morning. Although BDX is taking a pounding, they're still just a shade below what I bought em at, so I'm going to hold off on adding to my position there.
Right now might be a good time to buy into CR Bard though...Baxter's higher dividend is nice for my long-term investment outlook. Both companies are hovering at 52-week lows with a lot of upward potential though.
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I bought into the weakness
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