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Becton, Dickinson and Company Message Board

  • mlledaae_2000 mlledaae_2000 Dec 21, 1999 1:59 PM Flag

    The collapse of Becton Dickinson.

    Over the last number of months there have been a
    large number of messages highly critical of BD's
    management, a result of course of the dismal performance of
    its stock, and on the other hand a handful of
    messages to the effect that the stock is undervalued and
    due for a rebound.
    I'd like to add my opinion to
    the mix. I should mention that as with Kermit
    International I am a former executive of BD and therefore to
    some extent I know whereof I speak. Incidentally, I
    agree completely with everything that Kermit has said
    in all his messages.
    My take on the situation is
    that the stock will continue to languish for the
    foreseeable future and the main reason for this is the
    performance and continued presense of Clateo Castellini. In
    creating unrealistic expectations on Wall Street as far as
    revenue and earnings growth were concerned, he caused a
    complete loss of credibility and a resultant dumping of
    the stock.
    As Kermit referred to in message 2054,
    the situation has been made even worse by Mr.
    Castellini's staying on as Chairman of the Board. This is
    damaging to the future of BD in a number of ways. For one
    thing, Ed Ludwig will have to feel a bit inhibited in
    his roll as CEO, knowing that Mr. Castellini will be
    looking over over his shoulder. In addition, the
    perception on Wall Street will be horrible, i.e., that the
    Board of Directors was satisfied and even impressed
    with Mr. Castellini's performance to the point of
    retaining his as Chairman upon his retirement. Is this
    really the signal the Board wants to give Wall Street as
    well as BD employees, namely that the Board is a "do
    nothing" Board that is comfortable with the status
    By the way, shareholders hoping for a takeover
    are engaging in wishful thinking. The health care
    industry is a troubled one with tremendous cost pressures
    and it's obvious there's no takeover interest in BD,
    as evidenced by the fact that despite BD's enormous
    drop in stock price there have been no instances where
    the stock has reversed course and gone up
    significantly on high volume. I might add that a takeover
    assuming one did occur would be of little help at this
    point to shareholders(perhaps a takeover price of $30
    per share?) and would have unfortunate consequences
    for many employees.
    In summary, the only hope for
    a reversal in BD's foutunes is for some meaningful
    and dramatic action on the part of the Board of
    Directors. Thus, those of you who are shareholders should
    write the Board of Directors demanding that appropriate
    action be taken in order to make some substantive
    changes and to show Wall Street that the current
    situation will not be allowed to continue.

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    • the annual report. I think that you are afraid
      that the cash flow is negative after you take into
      account the capital expenditure. I normally look at the
      operating cash flow by that I mean the profit after tax and
      depreciation and also look at taxes.

      I do agree that
      capital expenses could appear to be big. But that is
      expended to strengthen the business. I am not saying that
      BDX is a great company. But I believe that it is a
      good company to own at the current prices. Nobody
      could buy at a bottom. But if the prospects appear
      reasonable, one can buy either for long term investments or
      medium term trading ideas.

      I am always learning
      things every day.

      Good luck.


    • He will maintain an orderly market demand through
      interest rates control on US bonds. He also will maintain
      a strong dollar, via money supply controls. Beyond
      that, anything else he does will be largess and within
      the constraints he needs to control inflation.

      Most S&P 500 stocks are already off their (early last
      year) highs by 20-30%. Many Nasdaq stocks are
      overvalued by mind numbing multiples. This will be an
      interesting period. I guess we will find out if we really do
      have "a new economic paradigm and world economy" or if
      this is market analyst hype and hot-air.

      1929, they said they had a new economy, based on
      automobiles and radio (communications). Guess what!

      think the industrial economy is still pretty healthy.
      It is the B.S. on the valuations that needs
      to play out.

    • I meant Greenspan will fix the NASDAQ madness by triggering tighter monetary policy and curbing the speculative froth.


    • I was in the process of doing my due diligence on
      BDX as possible purchase target for several hundred
      shares. I changed my mind quickly.

      Most companies
      with arrogant management, acquiescing board-sheep, and
      power hungry, ego maniacs ceo's, sooner than later will
      bankrupt even the national currency. By the way, a company
      does not have to have all of those. One of them will
      suffice for its demise.

      Just as a side note. I
      recently sold several hundred shares of VTSS because I
      found out that the CEO literally verbally abused
      someone that was conducting business with him. The
      interesting thing is that the person was looking to purchase
      a non-performing small asset--less than $5k value.
      That told me tons: power-hungry, arrogant, abusive,
      controlling; does not use time wisely; does not trust
      employees, etc., etc..

      This Castellini fellow must
      suffers from the same symptoms. Most likely, instead of
      serving his people he lords their jobs over them. And
      further, because he's not trustworthy, he does not trust
      employees and employees don't disappoint him in that
      regard. He's probably built or enhances a culture based
      on double speak--most notoriously destructive to the
      success of a company. I wouldn't be surprised if BDX does
      not have an employee booklet that explains what the
      employee manual means.

      Thanks for the info. I'll be
      sure to stay clear of such a mess. My money can do
      much better elsewhere.

    • Mimi,
      As the song goes, "my precious little
      only the Shadow knows where the bottom lies for BD.
      Quarter one is usually impacted by manipulations in prior
      Quarter four. Therefore one must wait for Quarter two to
      gage where BD will be headed in the year 2000.
      Pelligrino where are you? Please enlighten
      little mimi.

    • BDX meets $0.28 earnings for Q1 it will be because of backlog from Q4 sales. Not from Q1 sales, which in some sectors is well off target for Q1.

    • I do not know how sales are going with just a few
      days left in the 1st Qtr. Hope BDX can make $0.28
      earnings number this Quarter. Another quarter of making
      their numbers may stabilize BDX stock price at around

    • Hopefully, your contrarian instincts are right. Things are looking up today for BDX stock and the whole sector. Hopefully, the year-end rally has kicked into gear and we HAVE seen the bottom..

    • I believe that 70% of the common shares of BDX
      are closely held by (5) institutional investors.
      Given the small remaining float and minority status of
      individual (non-institutional, non-management) shareholders,
      I doubt that the BOD gives a damn about individual
      BDX shareholders. It will take pressure on the BOD by
      the institutional shareholders to effect

      However, these institutional stakeholders must be tired of
      losing shareholder value! Maybe they bought Clateo's
      package last year, but they also must be weary of being
      shagged by his hallucinagenic numbers, two years in a

      I agree that Ed Ludwig must be looking
      over his shoulder and should be given the right to
      manage out of the shadow of Clateo's politics and failed
      policies of the past. This raises the question of: Who
      should be Chairman?

      If anyone on the BOD reads
      this board, they must be aware of the discontent of
      not only shareholders but also employees and

    • my guess is that unless large funds with
      substancial holdings direct their attention to this
      situation...a few holders of an insignificant number shares are
      going to have little effect on a typical board boys
      club. The effect of the price on their own holdings of
      bd stock will probably have the most impact.
      like politicians they discount the stock sellers as
      just a group of the unfortunate and uninformed and
      only if they were as visionary as the bod the they
      would be purchasing the stock and the price would
      obviously be going the other direction. It is the
      shareholders fault, just as it is the

      remember it is only a loss if you sell it. I still believe
      my stock is worth 40 dollars a share and will until
      the day i dispose of it.

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