I’m Back

I took a few days off to rest and relax in Puerto Rico. I realize that I had neglected to mention this on the blog, though I posted a few updated on Twitter (you can follow my Twitter feed here). I apologize for disappearing without an explanation.
Now I’m back safe and sound in the office. Let’s get to some of the important news from last week.
First, Medtronic (MDT) posted very good earnings results for their fiscal second quarter. Excluding charges, the company made $850 million or 77 cents per share. Sales rose 8% to $3.84 billion. Wall Street was expecting 74 cents per share on revenue of $3.75 billion.
Medtronic also said they expect their full-year profit to range between $3.17 and $3.22 per share. Their previous range was $3.10 to $3.20. On Tuesday, the stock gapped up 7.3%.
Over the weekend, Barron’s had some nice things to say about Sysco (SYY).

To cope with a weak economy and lackluster market, Sysco has been slashing costs, seeking to lift productivity and has been benefiting from fast-food business, which tends to be more recession-resistant than other restaurants. But Wall Street hasn’t paid much notice. Sure, the stock has rallied about 40%, to 27, from its March low, but the Standard & Poor’s 500 is up 62% in the same span, and Sysco continues to trade well below the 40 it fetched five years ago.
Sysco’s shares probably are worth about 10% more today. They also yield a tasty 3.7% dividend. In several years, the shares could return to 40 apiece, as the company’s price/earnings multiple, now 14.7 times next year’s earnings, returns to its historic ratio of 20.

Finally, Becton Dickinson (BDX) raised its quarterly dividend to 37 cents per share from 33 cents per share.

Posted by on November 30th, 2009 at 8:43 am

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.