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


To: Jack O B who wrote (48266)6/6/2012 2:01:12 PM
From: Paul Senior  Respond to of 78462
 
Jack O B about BDX: Low $72 was low enough to where I was interested in beginning to add a few shares to my small position. Perhaps the stock might go lower -- it wouldn't surprise me. But who knows?

Stock at current and lower price offers a couple of opportunities to win (maybe):

1. A place to park money. 2.5% yield, with long history of increasing dividends.

2. A "safe" (maybe) stock--- company is dominant in some of its businesses -- I like the consumable nature of needles.

3. Alternatively (alternatively to a short-term hold), BDX seems to me to be a nice, conservative long-term, buy-and-hold stock for inclusion in a diversified portfolio.



To: Jack O B who wrote (48266)6/7/2012 12:57:47 AM
From: Sergio H  Respond to of 78462
 
Jack, here's a quick comparison tool for BDX to its peer group ratios.

biz.yahoo.com

On a quick glance, it appears that BDX is on the expensive side on book value and some other metrics, such as debt to equity and PE but its near the top in other metrics such as ROE and dividend rate. In all fairness, BDX is one of the largest companies in its sector and its high market cap and stable history have earned it higher valuations. Investors are willing to pay more for safety specially if they can get a higher dividend rate.

I don't own BDX. Haven't looked at it before. Good Luck