Smith & Nephew plc (ADR) (SNN)

nbpt100 (23.71) Submitted: 7/29/2008 12:59:50 PM : Start Price: $53.17 SNN Score: +0.92

Yes SNN will outperform the S&P 500 but don't expect huge returns. On the other hand the downward potential is not that much. It is a good investment based on the risk return ratio. This is a conservative company with a 1% dividend. Most of their profit comes from disposible medical devices which is a strong and steady business but slow single digit growth. Their wound management business is a very slow grower and I would not be surprised if they sold it. The big growth is in the orthapedics area which should deliver double digit growth. That is what everyone is focused on. The Stock price took a big hit earlier this year because of an impropropriety in Greece. The company has been buying back stock which does help the shareholders. Once they get over this impropriety in Greece the stock should return to outperforming the market, but don't expect a double in 2 years. This is a good investment for a more risk averse individual. It is a buy at todays prices.