Medtronic, Inc. (MDT)
A medical technology Company alleviating pain, restoring health, and extending life for millions of people around the world.
Recs
Overpriced products in the USA. This will not be allowed forever. Margins will suffer going forward.
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MDT has been underperforming SnP for past few weeks (and the past 9months).... tests $36 level with a lower MACD and price stalls... stochastics overbought.... beta>1 (should lag SnP during a recovery.
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MDT is the 800 lb gorilla of the medical device business. It looks like they have been involved in some very disreputable business practices in their spinal business; these problems are not going to go away soon. In cardiac rhythm management, they have no where to go but down. It appears that Boston Scientific may finally be starting a major comeback in the CRM business.
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I know that their is a reacall becase some of the leads on their pace makers are bad. I work for a cardiologist.
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Medtonic will continue to have problems with recalls and in getting approvals to market devices. Pipeline could lead to something greater than the 20x earnings currently projected.
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Enough warning letters already!
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I don't think the stock will beat the street.
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Pending lawsuits will keep MDT tame for a while.
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Needs to expand product line
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Med devices are out of favor. Solid player that could bounce if J & J wants to court them.

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