This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

For his top stock pick for 2009, market timing expert Sy Harding looks to medical products company, Zimmer Holdings (NYSE: ZMH).

In his Street Smart Report, the advisor looks at the maker of orthopedic implants, noting, "Currently trading at just 1.6 times books value, 2.3 times sales, and at 9.5 times earnings, the stock is a bargain."

Harding explains, "Zimmer designs and manufactures orthopedic implants, including joint, dental, and spinal replacements, as well as surgical instruments designed to aid in orthopedic surgery and post-operation rehabilitation.

"The company has been growing steadily from both rising sales of its own products, and from acquisitions. Its most recent acquisition was Abbott Spine, acquired from Abbott Labs for $360 million.

"The acquisition was funded from cash on hand and its already existing credit line, worth noting given how the credit crunch is causing problems for many companies. Zimmer's ratio of long-term debt to equity is only about 20% of its industry's average, and it maintains a high level of cash.

Continue reading Top Stock Picks '09: Zimmer Holdings (ZMH)

Top Stock Picks '09: Zimmer Holdings (ZMH) originally appeared on BloggingStocks on Fri, 09 Jan 2009 16:15:00 EST. Please see our terms for use of feeds.

Two keys to St. Jude Medical's success: systole, diastole originally appeared on BloggingStocks on Tue, 18 Dec 2007 16:29:00 EST. Please see our terms for use of feeds.

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.

Medtronic needs some pain relief originally appeared on BloggingStocks on Tue, 27 Nov 2007 14:44:00 EST. Please see our terms for use of feeds.

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.

Option update: GE implied volatility up into EPS originally appeared on BloggingStocks on Mon, 08 Oct 2007 09:45:00 EST. Please see our terms for use of feeds.