This stock has great potential !!! Techs are out,
medical supplies are in . If you want a positive return
on your investment, I'd recommend BDX now , BEFORE
the restructuring begins.The time is right and as you
know my friends, timing is everything !!!
Luck to all BDX investors !!!
I have less respect for MEL's board regulars than
they have for me. I assume you are also a MEL
shareholder. I'll be brief in my response, as this is off
topic, but I believe (no offense) that the MEL posters
behave as a childish Pennsylvania clique (most are PA
residents --though PA is not to blame...) I also believe
that most are Mellon employees who find it impossible
to be objective about the firm and its CEO, and who
spend their time posting the most unbelievable trivia,
which I largely ignore, but sometimes it gets on my
nerves and I'm afraid I did some heavyhanded venting in
my last post --hence their dissatisfaction with
I'm not a speculator and continue
to be a longterm MEL investor, but I felt --and
still feel-- that MEL's board is dominated by Frank
Cahouet and that ego played a large role in Mr. Cahouet's
dismissive and unceremonious rejection of BK's merger
Enough of MEL on the BDX board. On a lighter note, I'm
very pleased that the old dynamic BDX is back and that
a split may be around the corner. I hope the next
earnings release won't disappoint or we'll drop back to
Take care and happy investing in MEL and BDX.
First, I hope that you mean Net Revenue vs Gross
Profit. GP has been over 10 % for a number of years,
because as you have mentioned, they have reduced
costs.But again, mgmt has stated that for BDX to be a great
company, they must grow revenue, not gp over 10%. Again,
look at Q1 and Q2 performance w/o FX impact over 10%
w/o Ohmeda.The biggest question you should ask is, do
you believe that BDX has a PE ratio over 30? If so,
buy, if not then sell.And as far as acquistions
doubling net revenue, not going to happen unless BDX pools
with another company. Again, if BDX grows revenue at
10% average over 5 years, they are more then 75%
there. But then ask this question, is 10% sales growth
really good or just ok?I guess we will see.
You seem to be confused
between gross revenue and net revenue.
BDX has in fact
only been able to increase the gross revenue at a 5%
clip over the last few years and grow the net revenue
at about 13%. That tells you one thing....cost
Now that BDX has releazied that they have squeezed as
much profit as they can from their existing products,
they have begun to aquire other companies that have
growth potential. BDX feels that these companies can
grow these companies with more effecient manufacturing
processes and better distribution channels. Make no doubt
about it, the aquisitions will be the driving force in
doubling GROSS revenues by 2002.
In the most recent
quaterly report, you should note that Gonna Win is right
when he mentions the companies strategy.
as the restructuring charge, you'll recall that the
Street reacted very positively the day that it was
announced (stock rose 2 points). That charge is already
factored into the price! I too, am hearing that BDX
business has never been better! Good luck all, and please
continue to keep us posted Gonna Win!
Gonna Win, I'm in pins and needles over your
predictions. I hope they come to pass. I'm beginning to feel
good again about BDX after a long bearish phase, and
if in spite of the restructuring charge earnings
come in strong I think the stock will break into the
80's. And once the stock begins to trade in the 80s-90s
a split would be very likely.
Where have you seen this documentation?If you go
back and review BDX public statemtents, they are
always talking about double digit net revenue growth. In
fact, this year has been double digit growth without
Ohmeda. Also, 10% sales growth is conservative.However,
you mention a blowout quarter. Just remember that BDX
is going to be taking a restructure charge, so keep
this in mind when you look at the bottom line.BDX is a
good company, but $85. I hope your right, but I am not
going to hold my breath.
There's a problem with your plan. You see, BDX
has only been able to grow current sales revenue at
about 5-6% annually for the last 7 years now. What
makes you think they can increase that to 10% each of
the next five years?
The plan laid out is not
my own. It has been well documented that this is how
BDX will achieve doubling revenue.
As far as
improving thge bottom line, there are many cost saving
programs in place at the company right now, allowing the
company to become much more effecient and therfore,
improving Return on Equity!
Also, look for a blowout
quarter. This is the first quarter that will include
revenues from the Ohmeda aquisition!
IMHO the stock
gets to $85 after the next earnings report and splits
sometime around October.
�GONNA_WIN- I think that you are slightly off
with your story...Try this one for size.Double your
revenue as follows:1997 Revenue= 2,8005 year plan. Grow
your revenue at 10% for 5 years will bring revenues to
4,500.Acquistions = 600-700 New Products over 5 years =
400-500.Done. Thats how you do it. Therefore, lets not make
this into the greatest thing since white bread. Most
"Good" companies have already done this. What will make
BD special if they can keep operating expenses at
about the same level they are today which will make the
bottom line really good. Remember, due to acquistions,
very little if any stock repurchases, so EPS will grow
equal to net income. This is going to be a change over
the last few years.
currently bdx is in the midst of a major
restructuring plan involving all divisions , there has been
announcements at these locations describing 2x growth. Please
be patient and watch clateo work his magic.
clateo has already announced a hand picked successor in
the event he is unable to fulfill his term.
Transformation will thrive