C.R. Bard (NYSE:BCR)
has a problem; specifically, a growth problem. While the company has #1
or #2 market share in markets that make up over 80% of its revenue, a
hugely consumables-oriented business, and a solid legacy when it comes
to margins and returns on capital, Wall Street is a “what will you do
for me tomorrow?” sort of place, and Bard's poor organic growth has kept
a lid on the stock when so many other med-techs have enjoyed big runs.
Perhaps that can change, though. For starters, Bard has the
opportunity to leverage past R&D and M&A with new products like a
drug-coated balloon and an atrial fibrillation ablation system. Bard is
also looking forward to a large cash settlement from Gore, a settlement
that management has already earmarked in part for further
growth-oriented M&A. This gives investments an interesting dilemma
with these shares – the shares are only slightly undervalued on an “as
is” basis, but factoring the settlement and potential leverage from that
settlement (M&A that generates even more revenue, profits, and cash
flow) makes the shares quite a bit more interesting.
Please follow this link for more:
http://www.massdevice.com/blogs/massdevice/can-cr-bard-use-windfall-reignite-growth
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