Steris Corp (NYSE:STE)

Solid underlying business, but a lot of uncertainty around System 1 transition and delays. Assuming no additional FDA extension, STE should return to consistent growth and business as usual after the August deadline.

Dividend increase....Lowering costs... Safe business.

Got to keep the hospitals clean.

A good defensive (industry) and offensive (earnings) play that is right for this mrkt.

ibd

Their System I processor was modified and the FDA rejected the modification and has told Steris they must re-apply for their 510K. With another product on the horizon, (the Manzi sterilizer www.licsystems.com). they may be forced to buy the Manzi sterilizer which was approved by the FDA and has set the new standard for what it means to be "sterile". No other processor on the market (or in development) can meet the new standard.
Steris may elect to buy the Manzi system to stay in the growing "lumened device" sterilization business. This may require a cash outlay to buy Manzi. ($600-900 Million)

- haven't confirmed where their sales growth comes from in conference calls. NUMBERS

Is it their sterlizers?? Too much controversy and not sure they are up for a legal battle- FDA sends a letter and then ironically a lawsuit follows which seems they don't have a prayer.

Where are they in relationshipo to their competition??

why not?

Working at a drug manufacturing division at a small biotech company, we use a lot of Steris products. We go through about 10 bottles of IPA a day, not to mention what the other sectors of the business use. They also make SporKlenz, Vesphene, and LpH, great disinfects and basically the standards for clean room use. I know this isn't based on numbers but the products have a good following by their customers, and we will probably never switch brands. We just reoder Steris products without even checking out the competition. They have good pricing power and the demand for their products is growing each year as the business in general increases. The stock is priced 24 times earnings which is a bit much for a classic defensive Graham investor but I understand this company well and I think they have great future earning potential. The value of the shares is 1.7B and I see this as a bargain.

Steris is a company that develops and produces technology and services that are used globally to prevent infection and other types of contamination. The company is continuing to experience growth in the 4-6% range. The company has also recently authorized a stock repurchase program. This can signify that the company believes that their own stock is their best investment and also desire to drive earnings per share higher.

30.75/36 -26.5

Focus on sterlization given concerns around antibotic resistance germs will drive significant growth in next year

Insider info there have been some devlopements in sterilization of buildings, After outbreaks or attacks anthrax etc. This will be opened as a service and contracted widely. Ok this stock wont go wild but it will hold steady and rise slowly for sure 5yrs +

possible new CEO

STERIS Corporation develops, manufactures, and markets infection prevention, contamination control, microbial reduction, and surgical and critical care support products and services for healthcare, pharmaceutical, scientific, research, industrial, and governmental customers throughout the world. The company operates in three business segments: Healthcare, Life Sciences, and STERIS Isomedix Services.

The company posted a 4% revenue growth in the third quarter of 2007 with a strong order

Patterns, resulting in overall Healthcare backlog being at record levels, 21% up on year on year basis. This strong order pipeline promises the growth of the company for the coming several quarters. Additionally during these nine months the company has also completed expansions that added 10% in additional ethylene-oxide capacity at three of its smaller existing facilities. This additional capacity is expected to begin to have positive impact on revenues in fiscal 2008. Moreover the range of initiatives taken up by the company is gaining momentum and its new product flow is also improving which is expected to deliver both near-term and long-term results and value.

The demand in pharmaceutical equipment and consumables is expected to be positive with strong expansion in emerging markets. The company seems to well-positioned to garner the maximum on account of strong growth in the U.S. where several new pharma and biotech facilities are expected to be on the roll by the end of 2007. On the back of these facts the company is expected to bode well in the future and live up to the investors’ expectations.

Germs abound.

Because some big player will buy them for their Automatic washer business and the enzymatics they sell to enhance their present infection prevention business.

STE is a provider of infection control products. As the treat of bird flu looms and spread around the world this company will be a direct beneficiary