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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (34302)	4/26/2009 5:58:56 PM
From: Spekulatius	Respond to of 78751

re Hospital capex. I believe there will be Capex delays with hospitals. A lot of hospitals have cash flow problems due to the flood of uninsured people that go in hospitals and that cannot pay. Having said that, i believe that to be temporary. The Obama administration will bolster health care spending overall and i believe preventive care (screening, diagnostics) will be in the sweet spot because they are cost efficient, IMO. Also there are no excessive margins in this sector like with drugs (90%+ gross) or orthopedics (80+% gross). I do some business with companies from this sector in my job and have not noticed any pullbacks. Also there is a fair amount of well capitalized upstarts and incredible new science that will translate into new products in this sector, so i assume some folks think that this a place to be in.

To: Paul Senior who wrote (34302)	4/29/2009 2:59:46 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78751

BDX - i bought some shares. I am not sure why it sold off today. PE is around 13 which is not extremely cheap but in-line with the group. EBITDA/EV value is below the group (medical instruments), due to less leverage - BDX balance sheet is in excellent shape with no net debt. As I mentioned before BDX is best in class in the medical instrumentation group, so it should deserve a better multiple. I don't think it's a screaming buy but it is a decent buy - with or without swine flu kicker.