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Boston Scientific Corporation Message Board

  • zapmaster_the_kinq zapmaster_the_kinq Jun 13, 2013 5:46 PM Flag

    do or die, new CEO policy

    BSX has a debt of $4.25 B with almost no cash. The share outstanding are 1.35 B shares.
    Then why BSX is buying back its shares especialy at these hyped prices when some media is cheering.
    shouldn't lowering the debt be priority for the company?
    After all, buying back shares out of 1.35 B will not move the needle at all, especially when insiders are selling.
    I think, BSX is walking on thin edge if it see one bad quarter when there is no money to support the company.
    Well, interest rate is zooming up and it will be costly for BSX with big load of debt.

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    • Unbelievable cash to debt ratio. Maybe something is up with their devices and that is leading to higher prices. I like them with no debt, increasing cash, below book value with return to profitability. Following that path that's the medical laser device maker and renter Trimedyne out of Irvine. TriMEDyne had press releases on Boston Sci years ago, That's why I am here. I want to see what BSX is up to after a bad multi year period. Trimed yne had a bad period too but it looks like its coming out of it after a profitable March ending quarter.

    • Well, you are making a good point, but in recent years BSX has done a good job with the debt. It's at $4.25 billion now, but BSX has brought it down from $9 billion and higher. It's held at $4.25 billion for a while now, so that level must be a deliberate policy. I agree with you BSX needs to watch its interest expense. It's about 3.7% of revenues now, which is high, and could go higher if interest rates start to go up. Also, I agree the float is absurd. It's a relic of the busted GDT deal. If I was given the choice, I would say pay down debt before buying back stock. Less debt will boost margins and make BSX more stable if nothing else...

      Sentiment: Hold

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