After several years of pretty good appreciation, their stock has been very flat this year. The company has not been able to
really accelerate much top line growth. It appears the market has realized this. Much of their core business is in mature areas of
the medical supply industry so not much growth potential there. They have made a few small targeted aquisitions. Not a bad
strategy, but they do not seem to have the courage or interest in making a bigger play. Therefor, do not see much growth in year
This is a response to Evansgeo's post of 1/21. No, I haven't lost faith in the company, but after last year's dismal
performance I needed to vent my frustrations. Nevertheless, I haven't considered dumping the stock. I am pleased that earnings for the
recent quarter showed a healthy profit and that shares (today) broke through the 60's range. I still have strong reservations about
how the company expects to achieve its ambitious growth plans without seeking some new (non-traditional) niche for faster
growth, perhaps via a major acquisition. I remain skeptical, but appreciate that the stock is beginning to move. I only hope this
upward tick is not a flash in the pan with the stock later dropping back into familiar 40's-50's territory. I've seen that happen
many times before.
Top competitor in hypodermics is a Japanese company called Terumo, not Sherwood. Monoject is an also ran too. None of the above are any threat to the syringe business. Earnings should be released today. Look for upside suprise due to recent aquisitions starting show profit and cost savings plans being effective. Latest rumour is BDX is ready to make another substanstial aquasition any day now. Stay tuned.
I believe the next earnings release is due 1/22/98. The latest run up must be on anticipation of superior earnings and strengthening of health care stocks.
I figure the net earnings will be flat to slightly higer after currency fluctuations due to ASIA region and acqusitions. A lot of earnings and sales growth was pegged to come from that region. Before currency effects earnings may approach 11-13% year over year for the quarter.
Top competitor in the hypodermic sector (Sherwood Medical) was recently purchased by Tyco - this may cause loss of focus on their part, which will benefit BDX substantially. Hypodermic is 33% of total sales, and highest profit segment for the company. This is the second strongest competitor.
I agree this company is going places with strategic acqusitions. Hang on for the ride, might be bumpy short term.
Still think the CEO has no courage,,,,,,,,,
If your looking for a quick hit by investing in BDX I highly recommend you find another firm to invest in maybe RCOM,,,,(98 should be a great year) but if your looking to realize significant growth over the long haul, I recommend BDX,,,,
If you want to sleep at night and not worry about the day to day flucuations of a stock, (maybe vacation in Mexico) I suggest keep buying BDX at any price, just keep buying. I've been around BDX for about 11 years and one thing for sure, BD will take care of shareholders and provide better health care for people world wide. So enjoy the ride, but stick around for awhile.
Look for two annoucements within next 2-3 weeks,.. 1- earnings exceeds expectations and 2- BD buys a small medical firm. Stock typically spilts around 75-83 range and takes about 2years to get back up.
I am ECSTATIC --that's the word-- about BDX's new strength. I only hope it will not be a flash in the pan. A few times last year, the stock went up like this and then fell back and stayed down. I really hope this time the rise will be permanent.
I have been reading the messages you all have posted here for BDX. May I suggest that you all look at the options for this
stock. They trade on the Philadelphia Stock Exchange, and even though they don't trade loads and loads of options, you can always
get in and get out of your positions fairly easily. If you really think a stock is going nowhere quick, but you really don't
want to sell it, you should sell options against that position and dramatically increase your rate of return on that stock. It's
like getting more dividends. If you don't understand what I'm talking about, just post here your expectations for the stock, up,
down, or sideways and I can show you a way to capitalize on that using stock options. I have been trading options on this stock
since the mid '80's.
Courage, bigger play ????? I think your wrong. Consider the recent purchase of Difco Lab, This was the number one competitor for many years. A company that was 110 years old. I think this is the year, CEO is committed to doubling the business within 3 years.
I appreciate your response, but how do you suppose the CEO is going to double the company's business in 3 years when their medical supplies and devices division has been scraping by for the past several years with essentially static growth. Only their diagnostic division is doing slightly better, but they derive a larger share of their revenues from supplies and devices.
The Difco and PharMingen acquisitions were nice (though small) acquisitions and should add to the bottom line, but not significantly. After all their aggregate revenues for 1997 were a paltry $117 million, which is a drop in the bucket.
Clateo's master plan is to promote faster growth by focusing on the company's human resources and foster improved communication and collaboration among them. I know this isn't enough. I think he is going to have to make bolder moves to realize his growth strategy.
Picker, I agree with every word you wrote. BDX had been one of the best stocks in my portfolio up until 12/96. This year
their growth has stalled. The CEO seems very indecisive and does not appear to have a well-defined strategy to enhance shareholder
value. 1998 is going to be the same as 1997 = growth equal to zero or in the single digits. I've just received their annual report,
and the CEO's message to the shareholders is vague and full of platitudes. Things like "the power of individual initiative..."
and how "people resources...are the most critical... and how important it is to "achieve their fullest potential..." and "we
must improve communication..." and all that baloney, but there is nothing specific on how they plan to move decisively to promote
growth and move the company away from the status quo.
I am planning to attend the shareholder meeting if I am able to arrange to reach the site by public transportation. If not, I will write a letter to the CEO to make my views known. I am not sure this will do much since I am only a single voice, but I have a burning desire to get a few things off my chest.