Medtronic, Inc. (NYSE:MDT)

Cheap Stock

Well, this is down now, and may go lower short term. DCF values them at $68-$69. Paying a divididend. Work through the short term woes and they'll gain traction.

We will all need one if we are to live past our useful life

The healthcare sector is in the midst of restructuring. The sagging economy and Government healthcare reforms dealt a severe blow to providers. Medtronic is a major player in the healthcare sector and felt the effects. However, Medtronic has shown a steady increase in earnings per share, sales, and dividends. I feel the company is positioned to continue growth . On the other hand, there are some major concerns. Although Medtronic faltered in July, it found support and now trades over it's 200 day moving average at $39.03. The problem is, it is near the upper resistance of $43.33 and the Qtr.(01/12) estimates are dismal. This could affect the breakout and reduce the stocks performance. Therefore my prediction is a short term gain.

Medtronic's stock has been somewhat over slashed by the market downturn this summer - I hesitate to call it a crash - and I think the stock is headed to the mid 50s by the end of 2012. Forward earnings supports a mid 50s share price and Medtronic's dividend yield is near 2% to boot. I think this makes Medtronics an easy thumbs up since I've heard no bad news recently.

This is the big fish of medical device manufacturers. I'm fairly bullish on Health Care for the next few years, and this is a profitable company with a good track record and a widely demand for its products.

12/13

alex green recommendation for 2012 lifetime fellowship members released just day.

Spinal & ICD products having problems. But, can other product lines make it up?

My husband was given 5 years to live in 1984 at the age of 48. Thanks to Medtronic he lived until 2008. He made himself available for testing when it was offered and followed instructions to the letter. He had been on the transplant list but continued with Medtronic since it had been so successful. As is often the case he had diabetes, so there were other factors working against him.

The price of this stock is going to catch up to its income growth as investors realize Medtronic is worth more than its current value.

MDT has been on my radar for years. They have an impressive suite of products and pay out a decent-sized dividend. The stock has languished, but the underlying business keeps chugging away. Finally in value territory.

Dividend hikers to outperform stagflation.

MDT cryoballon system is gaining significant traction in the afib space. A potential recall by STJ on their Riata defib lead coupled with MDT's Protecta defib paltform's ability to detect lead failure, positions MDT nicely to gain market share in the CRM space...taking changeouts directly from STJ. Only concern is MDT's spine division, but think the recent set backs are priced in. Currently trading @ 12x earnings and 3% dividend yield. Probably will be a slow climb in Q4 (macro issues in the EU), but should see nice growth in 2013.

Expect $34 to yield decent gains by the time a few years gets done with this. Finally a decent value proposition with increasing dividend and decreasing price. Many prominent CAPS players longed above current level...

Solid company with good exposure to asia pacific.

Market Leader in a growing neccesity market is now trading at just Book Value ($21B) + 4.5 years Net Income ($3B avg x4.5=$14B) .... Current Market value of $35B avoids the fact that MDT's low debt (only $9B) wont hit the companies Net Income nearly enough to offset the growth MDT's sales will see as baby boomers etc. buy up their medical devices.

Great Business. Significant Competitive Advantage. The price is more than right.

Just too cheap. 10x free cash flow and they are buying back the stock and raising the dividend.

2.4b cash/8.1b debt
peg=1.1
p/s=2.5 and p/e=13
huge growth opportunity.
insiders buying shares.