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

Investopedia: Kinetic's Roller Coaster Ride Comes To An End

Wound care specialist Kinetic Concepts (NYSE:KCI) has had a heckuva ride over the last seven years. Once a Wall Street darling with a monopoly position in a healthy market, Kinetic saw setbacks in the courtroom and setbacks in the market before fighting back with an acquisition and some savvy product line extensions. That fueled a rocky share price trajectory that saw the stock cut severely on two occasions, only to bounce back strongly. 


All's well that ends well, though, and shareholders are getting a going-away present worth more than three times the stock's low during the worst of the credit crisis and recession.

Kinetic Gets a Deal
There have been rumors off and on about Kinetic Concepts being a buyout target for years, but the speculation heated up just last week. Validating that speculation, the company announced Wednesday morning that it had accepted an all-cash buyout from a private equity group. 



To read the full piece, please follow the link below:
http://stocks.investopedia.com/stock-analysis/2011/Kinetics-Roller-Coaster-Ride-Comes-To-An-End-KCI-SNN-SYNO-COV-JNJ-BCR-SYK0714.aspx

Covidien - Better Than People Seem To Think

By and large, if an investor finds a dollar bill selling for close to 50 cents on Wall Street, it is a safe bet that it really is not a dollar bill after all. But every once in a while there are good values hiding in plain sight, and diversified medical products company Covidien (NYSE:COV) might be one of those. 

A Respectable Quarter in a Tough Market
Nobody expected a break-out quarter from Covidien, and the company did not produce one. Nevertheless, constant-currency revenue growth of 4% and organic growth of about 1.5% was nevertheless a bit better than expectation. Devices did well, up 10% on strength in markets like oximetry while the newly-acquired ev3 business seems to be fitting in well. The specialty pharmaceutical and imaging business was weak (as expected), with sales down 11% overall and down 15% in specialty pharmaceuticals. Medical supply sales were up 1%, but this is a relatively non-influential business for Covidien. (For more, see A Checklist Of Successful Medical Technology Investment.)

The link below leads to the full article:
http://stocks.investopedia.com/stock-analysis/2010/Covidien--Better-Than-People-Seem-To-Think-COV-BSX-SYK-AGN-MASI-BCR-KCI1112.aspx