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Covidien plc Message Board

  • mountie75 mountie75 Sep 24, 2012 7:33 AM Flag

    Covient layoffs caused by Obamacare!

    The failed policies of Obama and Obamacare caused the latest layoffs!! People wake up and vote out the worst president EVER!!!!!!

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    • What company is Covient? Please read the ACA before making comments which indicate you are totally uninformed. Is this a sign of a lazy mind?

    • I get the message here, that Obamacare is decimating the healthcare industry. I can vouch first hand about the differences between a first class system like the US and that of a socialized system in Canada. I have spoken to Canadian doctors who would like to use more expensive devices that have proven to be more effective, less invasive and safer but they have been denied the opportunity based strictly on the raw cost of older devices versus newer devices, not a lot, but just a few hundred dollars per procedure.

      With that said, what rationale does COV have for the latest round of layoffs? Their stock is soaring so the street sees their value based on the current headcount. Yet at the same time they have gotten rocked again and again by the FDA via warning letters, consent decrees and recall after recall. Is now the time to cut staff? In my humble opinion the smarter long term move for the vitality of the company is to improve their product and compete based on quality rather than value.

      Lets not forget that the companies compromising COV were beaten down health sector companies that were purchased and squeezed for every last cent via layoffs by the former TYCO. It was under Tyco that J&J/ Ethicon took their tiny portion of the Medical Device sector and slowly overcame US Surgical going from a 20% market share to an 80% market share in about a decade. If the surgical division still lead the way today based on quality, innovation and durability they would be a $6 billion dollar company and not the $2 billion dollar company they are today. And if that were true, then COV would be a $85 stock.

      Right now is a crucial time for COV. The only thing saving them right now is emerging markets where they can compete on cost alone, they have already lost the battle based on quality and reputation in the "emerged" markets. But how long can this last until there are defeated in the new markets as well. They can squeeze pennies or fill a bag of gold, and this latest move clearly shows their preference.

    • The worst ever? I think Franklin Pierce holds that title. Obama can't even claim that distinction.

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