Take a Deep Breath & Buy BSX?

May 10, 2011
J. Webster
Comments Off on Take a Deep Breath & Buy BSX?

Take a Deep Breath and BUY BSX? That was the heading of a Yahoo Finance message board posting today. Well, what do you think? Are you willing to step in and buy this stock after it’s been taken down?

After Boston Scientific announced that Chief Executive Ray Elliott would step down in December, the stock got chopped down by 10%, but there was some worry that there was something else they weren’t telling everyone and stock holders weren’t going to wait around until they did. So they sold the stock off. However, Elliot told Reuters ‘he knows of no impending surprises’.

The poster on Yahoo Finance’s message board was optimistic and had this to say:

“This one was and is not a one person ( 65 yrs old) company!! Watch for big rise in stock later today or tomorrow. This one is a bargain.”

Another poster had this to say about Boston Scientific, saying, it’s not like CEO Ray Elliot was on par with Apple’s Steve Jobs:

“I have to agree with you. You would think it was Steve Jobs. And I believe he was asked to leave. If he was any good he would have turned BSX around by now.”

Here’s more of the news from Reuters on Boston Scientific:

When the industry veteran took over the reins in July 2009 from long-time CEO Jim Tobin, the company was still struggling to recover from a series of high-profile recalls of implantable cardioverter defibrillators and pacemakers and a crushing debt load it acquired in the 2006 acquisition of Guidant Corp.

Elliott set about selling off noncore businesses, including its neurovascular unit to Stryker Corp (NYSE:SYK – News), and made substantial progress paying down the debt.

In an interview with Reuters in September 2010, Elliott said his turnaround plan would take at least two years.

However, the company has been hard-pressed to jump-start growth in the face of stagnant demand in its two largest businesses, ICDs and stents.

“I think this was a tougher job than he thought. I don’t see him up and quitting out of short-term frustration,” said Jeff Jonas, a portfolio manager with Gabelli Health and Wellness Trust Mutual. “Ray is very well-respected on Wall Street and he has done a decent job stabilizing the company. He was dealt a tough hand.”

Related Posts Plugin for WordPress, Blogger...

Comments are closed.