Zimmer Holdings, Inc. (NYSE:ZMH)

CAPS Rating: 4 out of 5

The Company designs, develops, manufactures and markets reconstructive orthopaedic implants, including joint and dental, spinal implants, trauma products and related orthopaedic surgical products.

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Member Avatar scorp32 (27.05) Submitted: 2/22/2007 10:16:20 AM : Outperform Start Price: $85.52 ZMH Score: -23.43

This company has been around for years, has great products, and ever-increasing free cash flow.

As an added plus, their Debt/Equity ratio is 0.02.

As a healthcare stock, it will be considerably less volatile than drug manufacturers. Orthopedic implants and surgical supplies aren't controversial.

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Member Avatar me3tv (68.31) Submitted: 2/17/2007 9:11:51 AM : Outperform Start Price: $85.21 ZMH Score: -23.52

biomedical implants and prosthesis are only going to increase demand as the US population ages. ZHM had some growing pais recently but is positioned well for growth above the market average.

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Member Avatar robertrcrowder (< 20) Submitted: 2/8/2007 5:17:35 PM : Outperform Start Price: $84.11 ZMH Score: -22.90

From 27.00 to 85 since inception is great and with great new proprietary products on the way, should be astronomical

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Member Avatar rrand95 (75.29) Submitted: 2/8/2007 3:08:39 PM : Outperform Start Price: $84.96 ZMH Score: -23.70

Positioned to address increasing aged population.. Great Stock.. owned it since split and have added to my position consistently since

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Member Avatar agard43 (< 20) Submitted: 1/15/2007 4:17:18 PM : Outperform Start Price: $78.43 ZMH Score: -18.90

Business Week

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Member Avatar MCKInate (97.36) Submitted: 12/24/2006 12:47:25 AM : Outperform Start Price: $77.49 ZMH Score: -19.51

I think this is a long-term buy.

P/E is a little high, but hte company is a leader and hip, knee, and other body part replacements. As more and more people get older (i.e. baby boomers), and break things, they're going to need replacements. I see this company doing great in the next 5-10 years.

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Member Avatar farrockgrad (< 20) Submitted: 12/8/2006 7:19:30 AM : Outperform Start Price: $74.48 ZMH Score: -16.07

co. should benefit from the aging population and the need to replace human joints, parts.

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Member Avatar Riccccardo4 (< 20) Submitted: 11/22/2006 3:48:11 PM : Underperform Start Price: $73.41 ZMH Score: +14.89

Looking for a new CEO

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Member Avatar MCKInathan (97.65) Submitted: 10/27/2006 6:06:30 PM : Outperform Start Price: $71.18 ZMH Score: -14.73

Ok so the US is about to see the largest population of senior citizens ever. What does this mean?

Well besides staying off the roads in the next few years, it means more hip, knee, ankle, pelvic replacements than ever.

ZMH is the largest manufactorer of replacement body parts and americans are going to need it, especially since so many of us are overweight. Evolution has not caught up to the fact that people eat Big Macs so our bodies just can't support all that fat. Plus, thanks to the wonders of the pharmaceutical companies, people who should die...won't. Yet more motivation for replacement body parts.

It wouldn't surpise me in the future if 1 out of 2 seniors has some replacment part (hopefully from ZMH).

Another reason for the outperform is that the US is really anal about what you can put into someone's body. Unlike drugs from Canada, body parts from Mexico and Asia are still a big no-no. That means keeping the business in the US.

How can you say no to an industry with profit margins around 70%? I certainly can't...

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Member Avatar RMan54 (61.81) Submitted: 10/24/2006 8:24:47 PM : Outperform Start Price: $71.00 ZMH Score: -15.68

Ageing baby-boomer will need these implants of high quality and long-lasting performance.

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Member Avatar NotJesseL (< 20) Submitted: 10/20/2006 3:38:27 PM : Outperform Start Price: $70.28 ZMH Score: -14.15

Good company, demographics in favor, well run, cheap place to have an HQ, (Indiana). My wife talks to the Zimmer rep all the time and her employer greatly prefers their products. Sector got nailed during summer 06, and is recovering.

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Member Avatar SCVPhD (86.04) Submitted: 10/18/2006 2:41:06 PM : Outperform Start Price: $67.16 ZMH Score: -14.58

The same pitch as I am sure everyone else has mentioned. Baby boomers all getting older..yaddah yaddah yaddah.

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Member Avatar Durwood1 (< 20) Submitted: 10/6/2006 10:25:51 AM : Outperform Start Price: $70.08 ZMH Score: -15.92

Industry has hit a rough patch, but improving technology and the aging population make this joint/spinal replacement company interesting. With no net debt and good growth ahead, this well-positioned company should do well for investors.

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Member Avatar jimbob4334 (47.73) Submitted: 10/5/2006 10:44:27 AM : Outperform Start Price: $70.17 ZMH Score: -15.64

Should significantly outperform the market year over year

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Member Avatar wmcoxjr (46.85) Submitted: 10/4/2006 4:36:27 PM : Outperform Start Price: $70.05 ZMH Score: -15.38

been down for a while, solid earnings

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Member Avatar RukeyserWink (67.44) Submitted: 9/14/2006 1:54:11 AM : Outperform Start Price: $66.51 ZMH Score: -13.44

OK -- they have hip replacement technology and all of the baby boomers are headed that way. ; )

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Member Avatar Erniewho (< 20) Submitted: 9/4/2006 11:28:34 PM : Outperform Start Price: $67.81 ZMH Score: -15.59

A profitable biotech device-maker with population trends (aging boomers in need of replaceable parts) on its side.

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Member Avatar snapperreef (64.33) Submitted: 9/4/2006 8:12:09 PM : Outperform Start Price: $67.81 ZMH Score: -15.59

Large numbers of active older persons who will be more likely to need hip/knee prostheses or replacements. Baby boomers will be biggest source of customers. As a Zimmer knee implantee, I can personally vouch for the quality of the product.
With wide moat numbers such as Op margin of 33.9%, no ttm debt, nearly 30% of orthopedic joint market share, and stair step growth in earnings and FCF. I think it will handily outgrow the S&P over the next several years and may even get stronger as the active boomers get older.

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Member Avatar derHerr (< 20) Submitted: 8/24/2006 9:38:20 PM : Underperform Start Price: $67.67 ZMH Score: +17.00

Long term growth, but short-term pricing pressure.

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