Friday, January 27, 2012

Seeking Alpha: Covidien Plays To Its Strengths And Looks Undervalued

Sometimes healthcare is like real estate and success is all about location. For most of the past decade, Covidien's (COV) strengths were not seen as especially valuable - investors wanted the hot growth stories in stents, ICDs, and orthopedic implants, not a company that makes staplers and vessel sealers. Now, though, Covidien is the med-tech name that is showing good growth and the former winners are struggling to follow.

A Solid Start To The Fiscal Year
Covidien reported organic revenue growth of nearly 5% for the fiscal year; not only beating the analysts' guesses, but showing some acceleration from recent trends. The company reported 6% top-line growth from devices, about 4% growth in the pharmaceuticals division, and basically no growth in supplies. Relative to expectations, devices and drugs were surprisingly strong, while supplies were weak.

Please follow this link for the full article:
Covidien Plays To Its Strengths And Still Looks Undervalued

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