Another factor that will play into the equation going forward is the ratio of market cap to sales for BSX compared to its rivals MDT and STJ.
BSX is getting beaten up by typical short sellers trash talk and with the new CEO and improved earnings in 2012 we should see considerable upside from here and potential dividend and takeover possiblity would be the icing on the cake.
We will have the usual ups and downs but I think we will be on an uptrend going forward and I think the midcaps will perform best in 2012.
Also if you consider additional cash flow from the JNJ dropping competing medical devices, ending the royalty payments to Abbott and expansion in China, BSX will generate close to $1 Billion in cash each year.
So this gives the management and the board a lot of flexibility and paying a 20 cents a share dividend would level the playing field with others in the sector that pay dividend and attract institutions that buy stocks with dividend.
This move would cost about $300 million a year and is quite affordable.
All in all the risk-reward ratio favors the longs in 2012.