Healthcare Spin Off Companies Offer Opportunity To Investors
November 19, 2009 - The Wall Street Transcript has just published Medical Devices Report offering a timely review of the Medical Devices sector. This Special Report contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. Please find an excerpt below.
View Details of This Special Report
Recent Wall Street Transcript Special Reports.
Kristen Stewart is a Vice President and Senior Analyst in the equity research department at Credit Suisse, where she covers the medical supplies and devices industry. Ms. Stewart joined Credit Suisse in May 2007 after spending six years within the research department at UBS. Prior to UBS, Ms. Stewart worked at PricewaterhouseCoopers within the Financial Advisory Services and Business Assurance groups. Ms. Stewart is a graduate of Villanova University with a B.S. in accountancy and a BBA with a major in finance. She is a CFA charterholder.
TWST: Are there any companies that are longer-term turnaround prospects?
Ms. Stewart: I would say that Covidien (COV) is still in the process of turning itself around from when it was being managed under Tyco (TYC). I think Boston Scientific (BSX) certainly fits that category. They have had a lot of challenges integrating the Guidant acquisition, and they are attempting to stage a turnaround within its operations and its financials. Beyond those two names, CareFusion (CFN) is another company that has recently spun out of Cardinal Health. Typically what we see with spinoffs are companies that have been not as optimally managed or not as optimally run from a capital perspective, and that could be another potential turnaround play as well.
TWST: As you talk to management, what's the level of confidence at this moment?
Ms. Stewart: I think management are very confident in the factors that they control, their company decisions, but they are less confident in things obviously outside of their control. There is a lot of concern with senior management of the companies that I cover, as well as in health care broadly, when it comes to what is transpiring on health care reform side. They are, I think, a little bit more uneasy about what has been discussed and what could potentially come out of health care reform and tax reform as well. I think the lack of visibility has been a major issue for a lot of company managers as well as investors.
Note: Opinions and recomendations are as of 09/09/09.
KRISTEN M. STEWART
Vice President and Senior Analyst
Credit Suisse
The following companies have been an investment banking department client of Credit Suisse in the past 12 months: CFN, NSPH, ZMH, COV, BAX, BDX, BSX, and MDT. The following companies have been a non-investment banking department client of Credit Suisse in the past 12 months: ZMH and BAX. Credit Suisse has recieved compensation from the following companies in the past 12 months: ZMH and BAX. The following companies is expected to be an investment banking client of Credit Suisse or its affiliates in the next three months: CFN, NSPH, ZMH, SYK, EW, COV, BAX, BDX, BSX, BCR and MDT.
The remainder of this 41 page Medical Devices Report can be immediately viewed by purchasing online.
The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
The Wall Street Transcript does not endorse the views of any interviewees nor does it make stock recommendations.
For Information on subscribing to The Wall Street Transcript, please call 800/246-7673