I'm looking for somebody on this thread who knows more about health care than me - i.e. somebody who's been to a doctor in the last ten years, or somebody who is a doctor...Mike!
Anybody looking at Steris (STE)? On the surface, looks like a razor-blade model. They lead the market for instrument sterilization systems. As I picture it from reading the 10-K, doctors across the country have this thing in their office that they sterizile their instruments in, and Steris makes money on the goo they sterilize it with. Then they buy more goo and Steris makes more money. Their return on equity is very high, but the last quarter showed only 6% growth and the stock tanked. Can anybody help me fill in this picture? The stock trades at 15 times earnings, way below its historical multiple. I know, not the typical JJC stock, but I'm intrigued by the business model.
On more typical JJC stocks, LKI has retraced its gain from 11 1/2 back down to near 9. That's a buy below 9. And Clayton is looking very weak, but I don't care because I think I know roughly what the company is worth ($16-22) and I consider management simply excellent. Clayton is a buy below 14 (It currently trades at 10 1/2 and is falling 1/8 a day as everybody is worried about the coming quarterly announcement.) I have absolutely no intention of selling my shares, and am looking to scrape together some cash to buy more. If there are any Mattel fans out there, the conference call today was lame, so I still think you will get another shot at 22-23.
JJC
JJC |
