Primary business is the hip/knee replacements. What has generated a product cycle recently is that they can do hips less invasively with only small incisions and knees can be replaced. Stock has been coming off recently. Trades around 19 X earnings. Top line growth is 15% and earnings closer to 20%.
Has $2 billion in sales. Knee and hip business. Likes this business. Great demographics with an older population. Wonderful cash flow earnings growth. Limited competition so reasonably stable.
Generally cautious on the mainstream pharmaceutical companies, but this company is well positioned to benefit from the aging baby boomers with artificial hips and knees.
A little volatile. No debt. Earnings growth is 15/20% a year. Has a lot of sales in Europe which acts as a hedge on currency. Age demographics means more demand for their products.