Earnings coming next Thursday - should see a run up to 70 until the news is released, plus they acquired a stent technology company (as announced today), which is at the heart of the J&J BSX and Guidance merger. BCR may itself now be an acquisition target by J&J.
Well. It looks like JnJ is going to fall out of the running with Guidant. They still have to meet growth by 10 - 12% this year. Buying Bard would be like having anothe division in JnJ. They are excellent at diversity. Maybe the US and EU market would consider JnJ and Bard product line a no-no, but the rest of the world would not. Think globally. The truth is Bard is a great stock. If it was not a good company you would not want it. They always hit earnings. Just eliminate some overhead, consolidate a few manufacturing sites, and you make yourself a few more million. I don't pretend to be an expert, but if Bard can't get bought out, I would dump it.
Not that I have anything against the deal, but WHY would JnJ do a deal like this, financial sense may be all well and good, but - and I challenge you on this - the product mix needs to be right. Like I said, I dont see a good fit. That's where I have my problem, and frankly, I'll bet you wrote your post before thinking about THAT.
Think, guys, think. Before you operate the mouth, make sure the brain is engaged.
The bright spot in J&J's earnings this morning was the medical device group. That's why they went after Guidant - to bolster devices. BCR is even more in the crosshairs, now since it seems a much better company than Guidant.
Well, Smitty, you said it yourself. I won't comment further except to say that the post about the having the hernia market by the short hairs is a valid point. Certainly anyone buying Bard just to get the hernia repair line would really have a hard time with justification...but maybe I'm an idiot like you!