Diversified medical device maker C.R. Bard (NYSE:BCR) does not often get a lot of attention from small investors, but it has long been a popular name with institutional investor. The company has a long track record of consistent topline growth and one of the best histories of return on capital in the sector. Because of its consistency, its execution, and its well-diversified base of business, Bard has carried a premium valuation for some time.
Thursday's earnings shook up that idyll. Bard missed on both the top line and gross margin, and the company's vulnerability to the U.S. market once again came front and center. Perhaps, then, those shorts (Bard had an unusually high short ratio going into these earnings) had the right idea.
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