Stryker Corp
develops, manufactures and markets orthopedic implants for the hip, knee, trauma, spinal and
craniomaxilofacial needs as well as power instruments, endoscopic systems and
other operating room devices. The
company has grown profits and dividends at a 20%+ annual rate for the past 10
years earning an 17-19% return on equity.
SYK should maintain this record as a
result of:
(1) strong demographic
trends, i.e. the a rapidly growing older segment of the population,
(2) an extensive
and well diversified product line and will be introducing new knee and hip
products in the near future,
(3) an active
acquisition program,
(4) strict cost
controls,
(5) active stock
buyback program.
Negatives:
(1) it is in a
highly competitive industry,
(2) there has
been pricing pressures in its hip, knee and spine products,
(3) it has
recently experienced several product recalls,
(4) its
international operations expose it currency fluctuation risks.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate
Ratio Since 2002
Debt/ EPS Down Net Value Line
Equity ROE Since 2002 Margin Rating
Chart
Note:
SYK stock made good initial progress off its
March 2009 low, though it had difficulty surpassing the downtrend off the
December 2007 high (straight red line) and the November 2008 trading high
(green line). Long term the stock is in
a trading range (blue lines).
Intermediate term, it is also in a trading range (the purple line is the
lower boundary while the top blue line is the upper boundary). Short term, it is in an uptrend (brown
line). The wiggly red line is the 50 day
moving average. Neither the Dividend
Growth or Aggressive Growth Portfolio own shares in SYK . The upper boundary of its Buy
Value Range Sell
Half Range
12/12
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