Stryker Corp. (SYK)

(A Top Pick August 21/17, Up 20%) Hips and knees. Robotic surgery and 3D printers. His fear is that Stryker will buy Globus, and the subsidiary will overtake the parent.

This is a great company, he says, with a well-established track record. The price is getting to the point, where you are paying a premium at this level. He would diversify into other holdings as well, ideally through an ETF such as IHI-N

They make bespoke equipment. This can never be Amazon’d because the representative from Stryker works so closely with the doctor when they implant a new device into a patient. They are well-run, their robotics are leading edge. He likes the sector and this individual company but he would manage the idiosyncratic risk in this space by buying the IHI (US medical devices) ETF.

Compared to the competition, Stryker has 8% organic growth due to hips and knees business. Robotics for knees and 3D printers for hips are giving them an edge. Dividend’s been rising 14-15% per year. The premier medical device company. Yield is 1.1%. (Analysts’ price target is $182.10)

They are growing on robotics. On knee and hip are going to be the dominant player. It is the new wave.

He has been watching them since $100. They benefit from an economic barrier to entry, because competitors will struggle to gain market share due to the complexity of the medical procedures used to implant the devices. There is a rumour they may look to make a major acquisition. For a 5-10 year horizon, this is a great core holding. Yield %. (Analysts’ price target is unkown)