The CEO was on TV this AM and admitted they expect a financial challenge which will result in price cuts rather than increases. That's not going to raise their bottom line! I like this co but not after I heard that. I am out of here and the same goes for Zimmer.
lets set the record straight, health care reform may bring more pricing pressure but it also will result in much great volume, say 50 million people who never were insured. I think all the med devices, pharmas and other healthcare industries are trying to figure out if its going to be earnings neutral event or positive, I don't think it will be a earnings negative in the long term. The market hates uncertainty and thats what we have now. I was actually pleasantly surprised that SYK could keep flat numbers in such a difficult environment. Guiding to 2.90- 3.10 is actually encouraging to me anyway. The fearful got out today, I was expecting a bit worse quite frankly.