CareFusion (NYSE:CFN)
The company offers clinical and medical products for infusion, surgical procedures, medical diagnostics, medication and supply dispensing, infection prevention, and respiratory care.
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Recs
Previous employer, they have premium products that sell for a premium.
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Einhorn/ Spin-off
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A sleeper in the med device business. They're the best at at computerizing medicial stores systems for hospitals.
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With the government in the insurance business many of the medical stocks will advance.Although the public may get taken over the coals on the premiums and taxes that will be the result of the govt. option.
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read my alter ego htownjester for more details.
Recs
Recent spinoff of CAH. CAH retains 20% of stock and must sell within 5 years- only one reason for them to retain- they think it is offers a very attractive rate of return over that time period. Insider buys and significant insider incentive through RSUs / stock plan for employees. CFN of course also stands to benefit from a very nice pop once the healthcare debate is wrapped up in Washington, and substantively CFN probably has a number of offers which actually can/will reduce the cost of healthcare in this country over the long term.
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Already an industry heavyweight before separation from Cardinal Health. With an already broad market presence, this stock should outperform.
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Hospital spending will bounce back (eventually) and CareFusion should benefit once it does.
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