Medical device manufacturer Medtronic Inc. (NYSE: MDT) released 2Q 2008 results last week that inflicted some pain on investors. Total revenues increased by 2%. Sales outside the US increased 12%, but $73 million of that increase was due to currency exchange, not organic growth. Fully one-third of all Medtronic sales now originate outside the US.

CEO Bill Hawkins remains optimistic about "strong growth potential going forward," which is about as much of an admission one will get that the current numbers leave a lot to be desired. The company is focused on growing non-US sales, which is a smart move since Medtronic has already suspended US product shipments in its physio-control division due to unauthorized human bones used in some procedures. More recently, the recall of Fidelis cardioverter defibrillators in the company's largest division caused revenue to plummet by at least $130 million, in addition to $31 million inventory write-off.

On a positive note, the acquisition of Kyphon will begin to contribute to the bottom line in the spinal division sooner than expected, and both the diabetes and ear, nose and throat divisions posted 16% increases in revenue. The company expects final FDA approval for a drug-eluting stent by the end of the calendar year, so look for contributions to the cardiovascular bottom line in 2008.

General Electric (NYSE: GE) will report third quarter EPS on 10/12.

• Alex Brown says: "Given attractive risk/reward verses our $47 TP, we reiterate Buy."
  
• Investors and analysts have frequently called for the sale of NBC Universal because of its declining revenue and GE's 'Six Sigma' discipline not being compatible with Hollywood sensibilities.
  
• GE October option implied volatility of 24 is above its 26-week average of 20 according to Track Data, suggesting larger risk.

Stryker (NYSE: SYK), a medical technology company with a broad range of products in orthopedics and medical specialties, closed $73.14.

• SYK will report EPS on 10/17.
  
• SYK has been frequently subject to unconfirmed buyout chatter.
  
• SYK October option implied volatility of 34 is above its 26-week average of 25 according to Track Data, suggesting larger price fluctuations.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.