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Posts Tagged ‘healthcare’

Heal Your Portfolio with Kinetic Concepts - KCI

July 3rd, 2009 2 comments
Posted by: Dr, Paul Price
Date: Jul 02, 2009 at 10:44 PM

 

Kinetic Concepts- [NYSE:KCI] Jul. 2, 2009 $26.54
52-week range: $17.86 (Dec. 24, 2008) - $43.02 (Jul. 23, 2008) 

KCI is the leader in advanced wound care via Vacuum Assisted Closure [VAC] utilizing negative pressure wound therapy [NPWT]. They operate about 141 U.S. and 67 foreign, service centers with domestic revenues running about 76%.

Since its February 2004 IPO sales and earnings (from continuing operations) have risen steadily. Here are their per share numbers as reported by Value Line:

Year …… Sales ….. C/F …… EPS …… B/V ….. Avg. P/E
2004 ….. 14.45 …. 2.50 …. 1.63 ….. 0.74 …… 30.8x
2005 ….. 17.19 …. 3.39 …. 2.32 ….. 2.72 …… 24.6x
2006 ….. 19.47 …. 3.96 …. 2.69 ….. 5.06 …… 14.0x
2007 ….. 22.31 …. 4.59 …. 3.31 ….. 9.38 …… 16.3x
2008 ….. 26.63 …. 5.56 …. 3.57 …..11.50 ……10.4x

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Baxter International – A Low-Risk Buy/Write Candidate

April 12th, 2009 2 comments

bax-logoBaxter Intl. [NYSE:BAX] April 12, 2009: $49.23
52-week range: $46.63 (Apr. 7, 2009) - $71.53 (Aug. 15, 2008)
Dividend = $0.26 quarterly = 2.11% current yield

Baxter International Inc. develops, manufactures, and markets products and technologies related to the blood and circulatory systems. They also develop, manufacture, and sell vaccines for the prevention of infectious diseases. Baxter conducts operations in North America, Asia, Europe, Japan, and Latin America. Over 50% of revenues come from outside the US.

Baxter just completed an all-time record year in terms of sales, cash flow, earnings and dividends paid. 2008 marked the fourth straight year of significant improvement and consensus views now look for even better EPS of $3.75 and $4.24 for 2009 and 2010 respectively.

Despite all this good news BAX shares hit a two-year low of $46.63 on April 7th and they still trade at just $49.23 today. That’s just 13.1x this year’s and < 11.7x next year’s estimates versus a 10-year median multiple of 22x.

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