If Medtronic business is so good then why are they are they laying off workers? Granted the Medtronic financial report is good but they failed to indicate their future financials. They have already laid off 500 employees with plans of 1000 for 2012 and there are plans for future layoffs in 2013. If looking forward financials are going to be good, then why all the layoffs? Note: I am sure some of the layoffs are due to the Obamacare excise tax on medical devices. I would be careful buying any medical device companies until financials are reported to reflect the effect of Obamacare on medical device companies including the reduction of lower Medicare and insurance reimbursement on medical devices.
I wouldn't call MDT a "sell". However, in my opinion you can put the "layoff" blame on what's going on in Wash, DC and the polices of our president. He just doesn't understand business and continues to build-out more and more government. This, along with the administration's spending like there's no tomorrow and all the uncertainty has crippled business. The America people got just what they deserved. A wake-up call is just around the corner. The good news is that MDT's future is still bright.
I am considering MDT a sell for a couple reasons.1) dividend already paid for the first quarter 2013 2) unknown financial impact so the excise tax on medicall,devices which will either reduce income 3) Obamacare reduced payments on insurance reimbursements on all phases of medical care reducing Medtronic income. Until the effects of these issues and a report of forward looking financial growth due to the impact of Obamacare, I would not invest in any medical device company right now.
U.S. companies, and thus the securities of U.S. companies, perform best in an environment of
low taxes, low inflation, low interest rates, reduced central government regulation, and small government. In order for America’s internationally focused business enterprises to maintain their most competitive edge, there is an urgent need in this country for sweeping tax and judicial system reform.
The six guiding principles, printed on the RSC’s “conservative check card” are (1) less
government, (2) lower taxes, (3) personal responsibility, (4) individual freedom, (5) stronger families, and (6) domestic tranquility and national defense.