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C.R. Bard, Inc - Buy the Bard!

Sat, 01 Dec 2007 13:49:20 EST

C.R. Bard, Inc - Buy the Bard! - by fred

C.R. Bard, Inc (NYSE:BCR)

Buy the Bard!!

Research reports say 12,000 companies engage in the manufacture of medical supplies and devices with combined annual revenue of about $50 billion. The industry has become more concentrated, with the 50 largest companies holding close to 60 percent of the market. In some market segments, concentration is very high. Demand is driven by population demographics and advances in medical knowledge and technology. The profitability of individual companies depends on the ability to develop superior products. Large companies have economies of scale in manufacturing and research & development. Small companies can compete successfully by specializing in a particular market segment, or through technical innovation. Annual revenue per employee is about $200,000.

Major product segments are general medical supplies; surgical instruments; therapeutic devices such as stents, artificial joints, and pacemakers; and diagnostic equipment. Low-cost manufacturing efficiency is the main concern of companies that make low-technology products like latex gloves, tape, gauze sponges, and syringes. Technological innovation is the main feature of companies that produce diagnostic and therapeutic devices and instruments, derived from the explosive development of medical knowledge and treatment during the last decade.

The industry reflects the highly specialized medical treatments recently made available. Most medical device manufacturers specialize in one area of medicine and sometimes in just one type of treatment. EPMedSystems, for example, makes only devices that treat arterial fibrillation. The high degree of specialization in a field of rapid innovation allows small companies to compete successfully.

C. R. Bard, Inc. is a leading multinational developer, manufacturer, and marketer of innovative, life-enhancing medical technologies in the fields of Vascular, Urology, Oncology, and Surgical Specialty products. Bard pioneered the development of single-patient-use medical products for hospital procedures; today Bard is dedicated to pursuing technological innovations that offer superior clinical benefits while helping to reduce overall costs. Bard’s oncology products cover various devices used in the treatment and management of various cancers and other diseases and disorders. Principal oncology products consist of specialty access catheters, ports, vascular access ultrasound devices, and enteral feeding devices. Its surgical specialty products include meshes and fixation systems for hernia and other soft tissue repairs; irrigation devices for orthopedic, laparoscopic, and gynecological procedures; and products for topical homeostasis. Bard sells its products to hospitals, individual health care professionals, extended care facilities, and alternate site facilities.

Timothy M. Ring is the Chairman, Chief Executive Officer. He joined the company in 1995. Prior to this he worked for Abbott Laboratories for 10 years.

John H. Weiland is the President and Chief Operating Officer. He joined the company in 1996. Prior to Bard he was with Dentsply International Inc., a manufacturer of dental supplies. He also served as President and Chief Executive Officer of Pharmacia Diagnostics Inc. from 1989 to 1991 and as Vice President and General Manager of Baxter International - Scientific Products Division from 1988 to 1989. Mr. Weiland served as Vice President East American Scientific Products Division of Baxter Healthcare Corp. prior to 1987. He has been Director of C. R. Bard Inc. since April 20, 2005
Bard's main Competitors are Johnson & Johnson, Baxter, Medtronic, Boston Scientific, AngioDynamics and Merit Medical Systems. Bard reported net sales for the third quarter ended September 30, 2007 of $544.8 million, an increase of 10% on a reported basis over the third quarter ended September 30, 2006 net sales of $497.5 million. For this period net sales increased 8%. The consolidated net sales for the nine months ended September 30, 2007 are $1,618.7 million, an increase of 11% over the nine months ended September 30, 2006 consolidated net sales of $1,459.9 million. For the nine months ended September 30, 2007, net sales increased 9%.

The company has increased funding of research and development activities in recent years, with a focus on products and markets that are growing faster than 8% annually. In 2006, the company spent approximately $145.7 million on research and development, an increase of approximately 173% from research and development spending of approximately $53.4 million in 2001. For the company to successfully commercial all such products, prolonged testing and refining is required, but the success rate seems to be higher in comparison to its peer.

Decreasing value of the dollar as a currency effected a decrease in the net sales for the quarter ended September 30, 2007 by 0.2% compared to the same period in the prior year. Exchange rate fluctuations had the effect of increasing net sales for this quarter by 2% as compared to the same period in the prior year. Price changes had the effect of increasing net sales for the nine months by 0.1% compared to the same period in the prior year. The primary exchange rate movement that impacts net sales is the movement of the Euro compared to the U.S. dollar.

Their revenue growth and profit margin of 15.07 % clearly indicates that this stock will outperform in comparison to similar companies in this industry. In spite of the analysts view on downgrading stocks in this industry, Bard offers a good return on Investment. Buy this stock.

Apartment Investment and Management Company - no go

Thu, 29 Nov 2007 14:00:01 EST

Apartment Investment and Management Company - no go - by fred

S&P500 stock - Apartment Investment and Management Company (NYSE: AIV)

Stay Away from the stock but look out for bargain deals on apartments.

Legal entities Incorporated as trusts involved in buying, owning, managing and developing apartment properties are known as Real Estate Investment Trusts (REITs). Real Estate Investment Trust Act of 1960 governs these establishments. Such entities are in closed-end investments in real estate or related mortgage assets. This act exempts trusts from corporate income and capital gains taxation, providing they invest primarily in specified assets, pay out most of their income to shareholders, and meet certain requirements regarding the dispersion of trust ownership.A REIT is, simply put, a company dedicated to owning and, in most cases, operating income-producing real estate, such as apartments, shopping centers, offices and warehouses. Some REITs are also engaged in financing real estate. Most importantly, a REIT is legally required to pay virtually all of its taxable income (90 percent) to its shareholders every year.

Apartment Investment and Management Company, AMICO, owns and manages a real estate portfolio of 1,475 apartment properties containing approximately 260,000 apartment units located in 47 states, the District of Columbia, and Puerto Rico. As a REIT, the company would not be subject to federal income tax, if it distributes at least 90% of its taxable income to its shareholders. AIMCO was founded in 1975 and is headquartered in Denver, Colorado.
Garden-style, mid-rise and high-rise properties forms AMICO's portfolio. Real estate (owning and operating apartments) and investment management business (providing property management and other services relating to the apartment business to third parties and affiliates) forms its core activities. Through AMICO's wholly owned subsidiaries, AIMCO-GP, Inc. and AIMCO-LP, Inc., the Company owns a majority of the ownership interests in AIMCO Properties, L.P. (AIMCO Operating Partnership). As of December 31, 2006,AIMCO held approximately a 90% interest in the common partnership units and equivalents of the AIMCO Operating Partnership. AIMCO conducts all of its business and owns all of its assets through the AIMCO Operating Partnership.

AIMCO divides property operations into conventional and affordable. The conventional operations, which are market-rate apartments with rents paid by the resident, include 469 properties with 135,289 units.AIMCO Capital conducts its operations of 336 properties with 38,934 units, which typically are apartments with rents frequently subsidized or paid by a government agency. AIMCO's conventional operations are organized into four divisions, and are further sub-divided into 17 regional operating centers (ROCs). The ROCs are generally smaller business units with specialized operational, financial and human resource leadership. AIMCO Capital was organized to focus on the Company's affordable housing properties, the operations of which are most often subsidized or financed by the United States Department of Housing and Urban Development (HUD), state housing agencies or tax credit financing.AIMCO Capital operates AIMCO's affordable properties through three ROCs.

Portfolio management includes acquisitions of properties located in markets where its core portfolio is concentrated. AIMCO acquires properties and property interests in three ways, the direct acquisition of a property, acquisition of a portfolio of properties through a purchase or a merger or business combination with, an entity that owns or controls the property and the purchase from third parties.

AIMCO's core properties are located in areas where population and employment growth are expected to exceed national trends and where there is potential for long-term growth at higher rates of return. Its properties are located in coastal states, as well as the Rocky Mountain region and Chicago. At December 31, 2006, the Company had 270 conventional core properties. Within its core portfolio, the largest single market (Washington, D.C.) contributed approximately 10%, and the five largest markets (Washington, D.C., Southern California, New England, Philadelphia and Miami-Fort Lauderdale) together contributed approximately 38%, to net operating income during the year ended December 31, 2006. As of December 31, 2006, the Company had 199 conventional non-core properties.In 2006, AIMCO completed direct acquisitions of nine conventional core properties, containing approximately 1,700 residential units. These properties are located in California, Florida and North Carolina.

Terry Considine is the Chairman of the Board and Chief Executive Officer.He is also the Chairman and Chief Executive Officer of American Land Lease, Inc., another publicly held real estate investment trust but he devotes substantially all of his time to his responsibilities at AIMCO.

Timothy J. Beaudin is the Executive Vice President and Chief Development Officer. Catellus Development Corporation employed him before he joined AMICO.

Thomas M. Herzog is the Chief Financial Officer. He took care of GE Real Estate and prior to this he was with Deloitte & Touche LLP.

AMICO competes with Simon Property Group, Inc, Prologis, Vornado Realty Trust, Public Storage, Inc to name a few. AMICO's property operations team achieved solid results with same-store occupancy of 94.8%, year-over-year revenue growth of 4.2%. Comparing Same Store results in the third quarter 2007 with the third quarter 2006, total revenue increased $10.5 million, or 4.2%. The increase in revenue was primarily generated by higher average rent, up $27 per unit, or 3.2%, from $850 per unit to $877 per unit and higher occupancy. At quarter-end, AIMCO's corporate debt balance was $550.0 million, up from $540.0 million at year-end 2006, and carried a weighted average interest rate of 6.93%. The balance on AIMCO's revolving credit facility was $75.0 million and total dry powder at quarter end was more than $600.0 million. Net loss for the quarter of $2.3 million decreased $22.6 million from net loss of $24.9 million in the third quarter 2006. Higher results in the third quarter 2007 resulted from various items including: a change in accounting for tax credit arrangements in the third quarter 2006, which resulted in a non-recurring charge to earnings of $14.4 million, higher property net operating income of $3.9 million, and lower general and administrative expenses of $3.1 million.

Apartment landlords are facing the risk of a recession, a glut of residential homes coming back on the market as rentals, and poor performance during the last economic pullback. When the mortgage market begins to normalize, these REIT's have competition from bargain-priced homes that will attract renters to once again make comeback into homeownership. Since mortgages are difficult to obtain due to changes in underwriting rules sale of new apartments will be slow. The diluted EPS is $ 0.59, but the trailing twelve month P/E is 64 times. I prefer to stay away from this stock until something concrete develops in the real estate market.