St. Jude Medical, Inc. (STJ)

Only 10% off its 52-week bottom, poised to break through resistance point. A growth stock, with a bit of value now, the PEG is a respectable 1.55. With great operating margin, and return on equity, and especially, new products expected down the line, this should get into the mid 40's in next 6 months.

St. Jude Medical, Inc. develops, manufactures and distributes cardiovascular medical devices. They operate under five segments Cardiac Rhythm Management (CRM), Cardiac Surgery (CS), Neuromodulation (Neuro), Cardiology (CD) and Atrial Fibrillation (AF). The major geographic markets for their products are the United States, Europe and Japan. They also sell products in Canada, Latin America, Australia, New Zealand and the Asia-Pacific region.

Company posted solid fiscal year 2006 results with net income surging up by 39%, primarily driven by higher sales from pacemaker division, increased ICD product sales, higher sales from CRM division and favorable foreign currency translation. The above factors show an encouraging signs for the company.

The neuromodulation market is one of medical technology’s fastest growing segments. The above promises a positive outlook for the company in its Neuromodulation segment, started in November 2005 after acquisition of Advanced Neuromodulation Systems, Inc. Endorsing the same there was a strong growth in neuromodulation segment of the company, which increased by 17% from the previous year.

St. Jude announced that they are combining the Cardiac Surgery and Cardiology divisions, (which together provides 23% of annual sales) into a new Cardiovascular division that will incorporate all activities previously managed by both the divisions. This combination is estimated to improve operating efficiencies and thereby enabling them to increase investment in product development.

St. Jude estimates ICD market to grow by 10% till 2008, considering the annual death rates caused by sudden cardiac arrest in U.S. It has also given a sales guidance for 2007 that states a 15% growth over 2006 from all of its product platforms. Judging by the way of company’s performance and its future development in next-generation devices, the fundamentals look sound for the STJ.

Strong company at a value, near 52 week low.

St. Jude Medical, Inc. develops, manufactures, and distributes cardiovascular medical devices for the global cardiac rhythm management, cardiac surgery, cardiology, and atrial fibrillation therapy areas and implantable neuromodulation devices. Has four main perating segments

December-quarter sales were up 1.1 billion, 11% from last year, the Cardiac Rhythm Management segment recorded a 7% top-line gain. The Cardiovascular Business also recorded a 7% gain, and the Neuromodulation (which is fun to say, made me feel smart) was up 32%

The CRM is becoming much more crowed as the baby boomers start to get older (I should look into who makes depends) and St. Jude is well positioned to take advantage of this, also the Atrial Fibrillation and Neuromodulation (had to throw it in again) offer significant long-term growth opportunities

continuing to take market share

Any medical devices company seems like a pretty good outperform long-term. The baby boomers are going to spend almost all their accumulated wealth on keeping themselves alive sometime in the next ten to twenty years.

Good company. Lousy economy. Wait for the presidential election to be overwith. Barring terrorist attack, the medical tech stocks will get a honeymoon of sorts.

Hopefully they are finally pulling things togetther, and gonna start moving, most of the hype is probably in part by ISRG, but STJ is a diffferent company, that we all hope does half that well. It's been beating the S&P by not moving, now let's see if it can beat it and move.

this dog has an angel on his shoulders.

defenisve and growing

Today (Jan 8, 2008), they announced that strong fourth-quarter revenue will outpace the previous estimates. Their earnings call is on January 23rd, leaving now an excellent time to pick them up...seeing as how strong earnings usually drives a stock upward disproportionately.

VALUE LINES - TIMELY STOCKS IN TIMELY INDUSTRIES

Recent significant drop in share price does not reflect long-term prospects for this company.

I'm on the edge for this one!! There is always two sides to every story. On one hand, everyone needs medical services and as we all know, our waistlines are growing along with health risks involved. The more need for healthcare, the more you will go to the doctor. On the other hand of this, medical care is at an all time low. It's hard to go to the doctor if you don't have the money or insurance to do so. More and more people just "deal with it" to avoid heavy costs associated with medical care.

More people will get medical help

Life-saving devices that target heart disease. Higher than expected Q3 sales, and well insulated from macro turmoil.

nicely positioned to service the demise of my-y-y-y gen-er-a-t-ion. a demographic fact, jack

Mad Money

This is by far one of the leanest operating Medical Device companies out there. And! The only one to not have a major recall.