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Becton Is Ready for the New U.S. Health Care Era

Becton Dickinson (BDX), first discussed here on March 17, 2009 at a price of $65.66, remains well-positioned for the new U.S. health care era.

Look for Becton's 2010 revenue to surge 8-11% a a result of strong gains in its medical segment; diagnostics revenue should also rise substantially as demand for safety products and infectious disease/flu-related products sees steadily increasing global demand. Meanwhile, the bioservices unit revenue will likely trail the above, but still record 3-5% growth in 2010.

Continue reading Becton Is Ready for the New U.S. Health Care Era

Becton Dickinson Breaks Through Resistance

As expected, Becton Dickinson (BDX) has broken through resistance in the $65-70 range, hence it goes without saying I'm reiterating my buy rating for the company's shares, first recommended on March 17, 2009, at a price of $65.66. However, the call has qualifiers, so attention is advised.

In FY2010 Becton's revenue growth should total about 5% to 7%, after essentially flat revenue in FY2009. Hospital spending cutbacks will hurt, but BDX will make up with increased government orders, lower operating costs, and moderating raw material costs. Becton's medical and diagnostic units will likely register revenue growth at or above 5% to 6% in 2010; meanwhile, its bioscience unit will register more-modest gains.

Continue reading Becton Dickinson Breaks Through Resistance

Cepheid (CPHD): The next generation of diagnostics

"I still love Cepheid (NASDAQ: CPHD)," says biotechnology sector expert Michael Shulman in his ChangeWave Biotech Investor.

The advisor explains, "Cepheid does genetic testing of the things that can make us sick or kill us. The company is at the forefront of the next generation of diagnostics testing, and has real products already on the market." Here is his review.

"Cepheid has had outrageous sales success in the past few quarters and, therefore, has excellent profits looming. However, the true value for the company is its long-term potential.

"CPHD broke out about a year ago with a new test for the killer staph infection, MRSA, and the test is an order-of-magnitude better than any the competition has.

"A combination of tremendous public pressure and a CDC report that said MRSA kills at least 17,000 people per annum (and consumes billions of dollars, already), have hospitals everywhere putting in MRSA screening and prevention programs. And nine out of 10 of those hospitals are buying CPHD's equipment and tests.

Continue reading Cepheid (CPHD): The next generation of diagnostics

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Last updated: May 28, 2012: 12:05 PM

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