Stryker Corp. (SYK)

This is a terrific company and demographics for their artificial hips and knees are very positive. They are rumoured to be considering buying Boston Scientific. Because of the high rumoured price, Boston Scientific is up today, and Stryker is down. He thinks that this area is very investible because long-term growth is so good. People should have an investment in this area. The 10% drop in the stock price yesterday piqued his interest, at this price. Price at time of interview was $164.15.

Orthopedic equipment is a key part of their business. The frontrunner and pioneer of robotics in surgery, and gaining market share. For medtech, Stryker is where to be. (Analysts' target of $173.67)

Smith & Nephew or Stryker? Smith: Knows it only marginally. The options S&N were generation aren't attractive enough for him to buy. Stryker: Keep an eye on this. Their robotic surgery is cutting a strong profile in orthopedic surgeries. It's definitely becoming the market leader.

(A Top Pick Mar. 16/17, Up 20%) Like the healthcare equipment space. Aging demographics are positive. They're getting into robots in surgeries, which he views as positive. Expects it to grow in this area.

Looks okay. Hold it. Worry about it around $140 on the downside. Likes to see a stock fall and then hold, because it shows a dedicated base of shareholders and not a herd mentality. Makes him more confident.

It is not as diversified as JNJ-N. He prefers ETFs to capture the theme because you don’t get the risk.

He likes this company. Anything in the S&P 500, or even the S&P 100, is perfect for him. This closed at $147.29. Has a model price of $140, and the stock is just a little ahead of itself. Would be a buyer on any pullback.

Great company. They are improving their return on capital. Have done everything you could possibly want them to do as a company. However, there is a runaway stock price. If you own it, Hold and look for a better exit.

Hips, Knees and Ankles. They are capturing market share. He is seeing great take up here.

Seasonal strength is from the beginning of June until the middle of July and then goes sideways after that. We reached the end of the seasonal strength in the sector. You could hold until the next period of seasonal strength or sell it.

Comparing them to JNJ-N, SYK-N is blowing them out of the water. They are doing 3D printers to create products where bone can grow back. Dividend growth is in the 20% range. (Analysts’ target: US$156.00).

The medical device space has done well in healthcare. This goes back to so much money having left biotech. Part of what drives this one is surgical procedure growth. As the population ages, you need to get more surgical procedures. There are some good trends behind this company and it has been executing well. (See Top Picks.)

This is known for knees and hips, and they have sold millions of knee replacement implants. They’ve recently started using a robot to replace the body parts, giving greater accuracy and lower costs. With the robot, you can only use their parts, making it a closed system. He doesn’t foresee any changes in the US health care act having an effect on this company and their equipment. Dividend yield of 1.3%. (Analysts’ price target is $132.)

This is a business that people need to have exposure to. His clients own a similar company, Zimmer Biomet (ZBH-N) which manufactures replacements for hips, knees, and they do stuff for your back, dental. This is a business that unfortunately is going to do well as people age and live longer and wear out their useful parts. Hips and knee replacements is going to grow at a significant rate, and there are only a few companies that manufacture these things.

It is an interesting space, but expensive. Wait until we get clarity on what is happening with Obamacare. Investors may migrate out of the devices group.