Medtronic (MDT) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Medtronic (MDT)

MDT 99.81

-0.9%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Flan who wrote (33)	3/30/1997 4:33:00 AM
From: macaluso	of 687

I have owned this stock for the last 4 years and consider it to be one of the best managed companies out there. Besides my initial investment I buy more shares every month through their reinvestment plan, the lower it goes the more I can buy, lately shareholders seem a little confused about the company, so here is my opinion on the short and long term of the company. At 30x earnings the stock at these levels is overvalued but so is GDT at 70x which is one of their competitor. If anyone is looking to make a killing by buying this stock in the $60 I think the upside potential is only 70-75 whereas the downside could be in the mid 40s. The company obviously is not growing at the rate that everyone was accostumed to only because it is very hard to substain the 30-35% growth once a company has a big capitalization. That is why the stock hasn't shown any significant move in the last year, its called a time correction, it happened to WMT 4 years ago when their stock was selling at over 30x earning and instead of ralling with the rest of the market the stock has been in a trading range ever since. The same thing is happening to MDT it will stay at a trading range from here on until it gets from overvalued to fairly valued. If I would have to make an initial investment I would wait until the stock falls in the mid 50s if earnings come out short like last quarter the stock could sell off again. Last year when the stock was downgraded in january by an analyst it went down to the mid 40s only to rally back up. So short term this might not be a great investment. Now the long term outlook. Like I said before I am not selling this stock I buy more every month, the big money on this company was made from 93 to 96 now the company will grow at a slower rate and so will the stock its not going to split every year like it used to but I feel very confident that their business will be around for a very long long long time. You might not get rich quick with this company now but you also not going to get poor. So if anyone is looking to buy an A+ company (for the long term) with an exceptional management team, great products and a great future this stock should be added in your list. I don't know when the stock is going to go down 10 points or up 10 points because this is not a stock that I trade at all, so it doesn't make any difference for me if I will buy it at 50 60 or 70 I know that 10 years from now it will be much higher than it is now but what I know is that you should cut your losses and keep your winners. This is a winner.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next