Your f-ing brain among other things. The CALLS are so cheap because the stock is anticipated to drop. Go ahead and buy some CALLS, shoot the wad, sell everything and buy CALLS. They are on-sale as you said.
If you all really think the stock is going to make such a dramatic move (as it has been doing lately), why not capitalize on
it by buying some calls!!! They allow to to control a much larger amount of stock with the same investment of dollars. Right
now, the calls are trading cheap, especially the March 45's. Those options are trading near parity, which means you can buy the
equivalent of the stock, but only have to put up $20/share rather than $65/share. In this case, you could control 3x as much stock for
the same money (assuming that both positions are paid for in cash and not margined). What am I missing??
What if the Glucose Watch were to go one step further and become an interactive system . In other words, it could respond when glucose levels are not acceptable and delivar insuin when needed. Wouldn't that be a great product??
There are hurdles to overcome such as molecular size but that's what R & D is all about!
If BDX can use a patch for glucose monitoring, could it also have the potentiel to be used for other diagnostic applications? Maybe!
This transdermal business has the potential to be a big winner for BDX someday. By the way, the infusion business recently aquired from BOC aquired fits well for BDX.
The transdermal patch is a very limited means of administering wide types of medicants. The biggest barrier is variation in
size of molecular structure that is unable to penetrate through the skin. Alterations of the technology use pulses of ultrasonics
to excite the skins cells to open and close allowing medication to pass through the epidermal layer of skin cells. This is a
limited application market for the immediate future unless some breakthrough arises. This is not a reason for accelerating stock
As for the glucose watch, there are numerous types of monitoring systems. This would be good technology, but is would not be a consumable product and may have limited profit potential. BD is a world leader in diagnostic equipment(high tech, high $ equip.), and also in disposable products.
Don't get me wrong, I like this company, it's doing things right, but I expect the share price to pull back into lower 50's over the next few weeks, until something substantial changes to support a PE of 25+ (historical average is much lower). Top line growth rate is much lower than this level, so what gives???? Investors are seeking out stable growth in an uncertain market.
For years BDX has had a hard time increasing sales revenue due to the maturity of their product line (i.e. syringes). Castellini (CEO) has realized that the only way to boost sales is to aquire several smaller companies and manage them better. So far, this strategy is working well. It's no secret that BDX will continue to be agressive in making these type of deals.
BDX also has several promising products in the pipeline, such as the Glucose monitor system being developed by Cygnus and needless drug delivery systems (i.e - transdermal patches) Could you imagine a world where you wear your medicine? These guys may make it happen sooner than you think!