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

To: Paul Senior who wrote (39407)	9/24/2010 7:39:35 PM
From: E_K_S	Read Replies (2) \| Respond to of 78673

Hi Paul - COV only 2.38 years of Net Income to cover LT Debt. An Interesting Value Play. Re: Covidien plc. Ordinary Shares ((NYSE: COV) vs Becton, Dickinson and Company C(NYSE: BDX) This one looks like a good value bet. I like that they can cover their LT debt w/ net income in 2.38 years. Forward PE is expected to come down to 11 and the stock is still below it's 200 day MA. I will look for an entry point on any test back to it's 50 day MA at $37.85. A higher dividend would be nice but that could happen in 2011. Yahoo Finance shows BDX as a competitor. BDX is selling slightly above it's 200 Day MA. It's has a better LT Debt to Net Income profile at 0.5 years! It's forward PE is little improved from it's trailing PE (around 14) and does not show as much improvement (in profitability) as COV. Dividend yield is slightly better for BDX. COV looks like its expected to be more profitable next year and as a result could be fixed to gain more than BDX. I recently sold my SNY and am looking for another Drug/Health Care related investment. JNJ was one on my list but COV or BDX look like better value propositions. Good find by Spekulatius and follow up by you. Too many of these companies fall off my radar. I will add COV to my watch list and hope for a slight check back to the $37.85 area. EKS FWIW I too am looking to book some gains in SFL but am waiting for $19.25/share. It's hard to give up that 7.5% yield w/ the expectation that there will also be another dividend raise this year. Rumor has it that they have been raising funds to lock in another Ultra Deep drilling Rig contract. There is some speculation there is an order from Petrobras.