I don't think the lead dog knows where he is going and all the other dogs in the line only have a view of what is under the tail of the dog in front of them. In 10 years, this company has slipped from dynamic leadership to pathetic leadership. I think the street recognizes this and will not reward MDT going forward because of this lackluster "leadership."
"Leadership" is influence, nothing more and nothing less. That is John G. Maxwell's definition and I think it is perfect. There are two kinds of leadership, positional and influential. In positional leadership, the boss tells you what you will do and you do it because he / she is the boss. In influential leadership you follow the leader because he / she has sold you on the mission and the opportunity. Positional leaders tend to bully and influential leaders tend to sell their programs, listen to other ideas and gain collaboration. Many Medtronic employees today are afraid of their bosses because they don't want to be the next person let go in the downsizing that is going on. I have spoken to enough of them to tell you that they are afraid of losing their jobs and they do not want to irritate their boss. Most need to work for financial reasons and they will tolerate positional leadership and go along with the status quo. It is a sad state of affairs to see a company with so many unhappy employees. I know some knucklehead will jump in and tell me that I am either a disgruntled employee or I don't know what I am talking about, but the fact is, I know exactly what I am talking about and to that person I would say "take your head out of the sand and look around your company."
I kind of agree with purkinjiedoc. I think Wall Street is uninspired by the current management of Medtronic. I think the street is watching how Medtronic handles all the negative press on the Fidelis leads issue and the pending lawsuits. I also think the bump for Endeavor is built into the current price, although I hope not. Medtronic lacks dynamics at the top.
No, it is not a pig stock, it's a company in an industry that is going through some tough times due to recalls with ICDs, stents and leads plus many lawsuits. The economy is boardering on a recession, if it hasn't already started. A contraian would look at this as a time to buy.
Medtronic will pull out of this mess just as it has done in the past.
Clearly MDT will recover from the Fidelis aftershock but that only gets us back to where we were when ADC became CEO. Medtronics past recoveries have all been driven by significant therapeutic breakthroughs such as Rate Responsive Pacing, ICD's and CRT. Unfortunately, during the past decade the management prioritized Sales over R&D/Clinical Trials so the New Therapy cupboard is bare. I think that they are in for a long drought and we really need to see them invest in dramatic Therapy Development. That is what the Analysts should be asking and writing about - the pipeline rather than the gas tank.