Becton Dickinson
produces a wide range of medical devices as well as products for the collection
and transport of diagnostic specimens, instruments for analysis and testing for
infectious diseases and research and clinical tools for the study of
cells. The company has grown profits and
dividends at a 12-17% annual pace over the last 10 years earning a 20%+ rate of
return on equity. The company should
sustain its growth via:
(1) new product
innovation and introduction,
(2) a newly
instituted cost containment program,
(3)
international expansion,
(4)
acquisitions.
Negatives:
(1) high
unemployment reduces the demand for medical care, in particular, testing,
(2) highly
competitive industry,
(3) its
international operations subject to risk of losses from currency fluctuations,
(4) rising raw
material costs.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio Since 2004
Ind Ave 1.5 10* 26 NA
Debt/ EPS Down Net Value Line
Equity ROE Since 2004 Margin Rating
Ind Ave 25 15 NA 14 NA
*over one half of companies in BDX industry do not pay dividends
Chart
Note:
BDX stock made good progress off its November 2008 low, surpassing the
downtrend off its January 2008 high (straight red line) and the November 2008
trading high (green line). Long term,
the stock is in an uptrend (blue lines).
Intermediate term, it is in a trading range (purple lines). The wiggly red line is the 50 day moving
average. The Aggressive Growth Portfolio
owns a full position in BDX. The upper
boundary of its Buy Value Range is $101; the lower boundary of its Sell Half
Range is $152.
9/14
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