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

To: benbuffett who wrote (44169)	8/31/2011 5:51:16 PM
From: E_K_S	Respond to of 78714

Medtronic, Inc. (MDT) Good debt profile, low forward PE (9.3) and OK dividend 2.8%. Getting close to value range for me and probably worth starting a tracking position. I have added it to my watch list. Previously I owned COV (another medical equipment manufacturer) but sold it for valuation reasons. MDT compares a bit better especially forward PE & dividend. finance.yahoo.com Thanks for the suggestion EKS

To: benbuffett who wrote (44169)	8/31/2011 9:59:38 PM
From: Spekulatius	Respond to of 78714

re MDT Not a pharmy but what about MDT. Not a screaming buy however trades at 12x e, growing dividend, decent cash flow. Currently trades at $35 per share MDT suffers from the Pfizer disease <pun intended> - they use their FCF to acquire companies, take costs out, milk them - rinse and repeat. What they cannot do any more is innovate and grow organically. What Pfizer and MDT do is a very expensive way to maintain their business (they don't grow any more despite the acquisitions). The FCF number is misleading since the funds are spent for acquisitions. Also note that MDT debt has been rising steadily. I think it is a value trap or worse - unless they have a new leadership that pursues innovation and organic growth, I take a pass (and yes I did own it in the past).