Thursday, November 29, 2012

Investopedia: Smith & Nephew's Costly Deal

Even granting that this is a challenging time for the orthopedics industry (and healthcare device providers in general), Smith & Nephew (NYSE:SNN) is struggling a little more than most. The company has been losing share in orthopedic implants like hips and knees and disappointing investors with regards to cash flow production, and the stock has been chopping around in a $20 range for about three years now. While the news on November 28 of the company's Healthpoint Biotherapeutics acquisition does bring in advanced wound care products with very good growth, Smith & Nephew is having to pay a pretty hefty price for this growth injection and this just isn't a sustainable long-term plan.

Read more here:
http://www.investopedia.com/stock-analysis/2012/Smith--Nephews-Costly-Deal-SNN-MMM-JNJ-MDT-COV1129.aspx

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