Zimmer Holdings, Inc. (NYSE:ZMH)

Liked that its name began with a Z.

Baby boomer joints are failing; demand will persist.

Outperform

Here's the buy rec:
http://www.fool.com/investing/general/2011/01/28/rising-star-buy-zimmer-holdings.aspx?source=ihpsitota0000001&lidx=2

I think that joint and other replacement operations are going to grow even faster than most analysts expect. this is based on my experience with people near my age (66), what they are experiencing (close to or at needing such an operation) and the overwhelming desire to stay active.

Zimmer is seeing modest declines in business while peers (i.e. Stryker) see modest growth. They saw significant declines in Europe which represents a sizable part of their business. Additionally, the CEO seems to have more background in law than in business.

Added 8/23/10

A high ROE business with the ability to grow. Demographics should lead revenue to grow faster than market. Current pricing is attractive for longterm investors.

Concerned with news of hip replacement failures and attention from the US senate: http://topics.nytimes.com/topics/news/business/companies/zimmer_holdings/index.html

Good range of products. Marketing "Iffy".

The days of Zimmer owning residency programs to train orthopaedic surgeons are numbered. This company has lost it's innovation edge.

The company has been and continues to be in a strong position. The need for quality prosthetics will on increase as long as the wars go on.

PEG = 1.29, low risk = 10, gut

With the troops coming back injured in need of prothsetics, the demand for these devices will only increase for the foreseeable future. Company has a history of good management.

medical related picks I would look to go long on:
ANIK, RTIX, PPDI, EXAC, ZMH

Low relative PE, good star ranking, PEG & 09 PE still below normal - bottom fishing 7/20 picks.

Once the recession is over and the government healthcare scare is eleviated.

made a value screen. I think.

Beaten down stock with an important edge in the prothesis market. The demographic trend will help in this case. However, must be always innovative and at the top of their league to keep strong relation to surgeons.