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
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.
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.
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 dot.com valuations that needs
to play out.
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.
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.
He was a good leader. He had a vision. He managed
with values. He challenged the status quo. He
initiated a lot of healthy change. While it's true the
company did not deliver the results he or you wanted this
last year, he has set the stage for a stronger company
in the future. Others may get the credit, but it
started with him.
I just read the BD annual report and did some
research on Castellini. I don't have a problem with his
background and believe BD is positioned for excellent growth
(longterm). If your looking to for investments with touchy
feely CEO'S at the helm, your living in a fantasy
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
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.
keep in mind for the investor, as opposed to
TRADER, this low 20's price is a buying opportunity, as
are the attractive prices of pharms such as pfe, sgp,
mrk, bmy etc. a world-class name with products that
are in high demand; i live in a medical community ,
literally ALL of whom use bdx products. this company is
having its travails, but it will not shrivel up and die.
i am buyin in gradually and would like to get 800
to perhaps a thousand shares here. don't write these
guys off yet... good luck to all-short or long.