Defibrillators

Sales fell across the board when including Guidant-related sales in last year's first quarter, but did improve in a couple of categories on a sequential basis.

And, if you look at the glass as half full, double-digit falls in drug-eluting stent sales mean that Guidant-related CRM sales now account for the bulk of sales, making the acquisition potentially worthwhile.

And after some unscientific results to end last year, the recently filed 10-K highlighted that cash flow generation was decent.

Based off the cash flow statement, free cash flow looks to have come in at about $1 per share, implying the stock is trading at under 16 times free cash.

That could turn out to be a very favorable multiple if sales trends reverse course and current profitability can be maintained.

On the flipside, if sales continue to fall, then the heavy debt load taken on to acquire Guidant could become even more cumbersome.

Note that interest expense was half of operating income for the quarter.

At current prices, the risk/reward tradeoff appears favorable enough to warrant a full checkup on the stock. And if drug-eluting stent sales recover, Boston Scientific could be able to outperform competitors including Johnson & Johnson (NYSE: JNJ) and Abbott Labs (NYSE: ABT).

Plus, Medtronic (NYSE: MDT) is just getting w...

It covers a broad range of things." The South District fire department started in the 1950's and serves more than 13,000 residents.

Citizens pay a separate tax for the service because they're in a rural area not covered by the folks downtown.

The money would help with crews heading to rural calls like this morning's brush fire.

For that reason and others Sanjay Rambhia voted in favor of the budget, and he's not alone.

"They did come to my house one time, smelled something funny, carbon monoxide, and they did a little check for us," Rambhia said.

"They came to put out a fire late at night, to put out a fire at the neighbors and it was great to have them," Linda Carlson said.

A few years ago voters weren't so grateful.

It took four tries before the budget passed.

The district was $30,000 away from financial disaster and state oversight.The chief doesn't want that to happen again.

"Ensure the service is gonna be there for them," Ross said.

If the budget passes the fire commission will approve the numbers and the department is good to go.

If it fails it's back to the polls.

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In fact, back in 2000, Medtronic traded at $62 per share, over 50 times projected earnings.

As expected, earnings have more than doubled since 2000, but despite that, the stock price has declined.

Medtronic stock now trades at less than 20 times projected earnings, only a small premium to inferior businesses.

Like many of our more recent purchases, we believe Medtronic will continue to achieve superior growth and expect it to again be accorded a superior multiple.

WESTERN UNION (WU) We believe Western Union is an unusually high quality business.

It is the dominant leader in international money transfers.

The growing number of people working in countries away from their families has dramatically increased the demand for that service.

We believe the stock price does not fully reflect Western Union’s growth prospects.

During the quarter we added to our Western Union position and sold our remaining First Data shares.

Click Here for Bill Nygren's Current Portfolio Click Here for Bill Nygren's stock picks Tags: S, GCI, MDC, WU, You need to log in to leave a commentRelated Articles about Bill Nygren:Bill Nygren Buys Medtronic Inc.

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