Tuesday, March 8, 2011

Medtronic Inc 2

This is the token US health care stock (NYSE-MDT) that I follow. What I am trying to see is, would have I made any money investing in this US Stock in the past? For the few US stocks that I do follow, it does not appear I would have made any money, including making money on this one.

I do not find the US information on insider trading as good as the Canadian information. However, it is clear in this case that there is more insider buying over the past year than there was in insider selling. Also, the most recent insider trading has all been insider buying. The other promising thing is that dividends were recently raised by 9.8%.

The next thing to look at is historical Price Earnings Ratios. The 5 year median low P/E ratio is 23.5 and the 5 year median high is 28.5. These are high P/E Ratios. However, the current is rather low at 11.5. This shows a current good stock price. When I look at the Graham Price, I get a current one of $33.08. The current stock price of $38.96 is some 18% higher. However, the average 10 year difference between the low stock price and the Graham Price is 160%. The stock price has in the past been way higher than the Graham Price.

This stock has a 10 year average Price/Book Value Ratio of 6.06. The current P/B Ratio of 2.72 is 45% lower than this 10 year average. The last thing to look at is the dividend yield. The current yield is 2.3% and the 5 year average is 1.3%. So, by this measure the stock price is also low.

When I look at analysts’ recommendations, I find that there are ones in all categories of Strong Buy, Buy, Hold, Underperform and Sell. Most are in the Hold category, but there are also a lot of Strong Buy recommendations. The consensus recommendation would be a Buy. (See my site for information on analyst ratings.)

Here is a review from The Money Times site. There is another review at Blogging Stocks.

Some people think that now is the time to get into US stocks since our currency is so high. We can make some money if our currency stays where it is and make a lot of money, if our currency goes down again, against the US$.

Medtronic is the world's leading medical technology company, pioneering device-based therapies that restore health, extend life and alleviate pain. Primary products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, among others. Medtronic operates its business in one reportable segment, that of manufacturing and selling device-based medical therapies. The company does business in more than 120 countries. The company's product lines include cardiac rhythm management, neurological and spinal, vascular and cardiac surgery. Its web site is here Medtronic. See my spreadsheet at mdt.htm.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.


  1. Hi,

    Sorry for putting this here in the comments, but I couldn't find an email address to send this to.

    Anyways, would put PetroBakken (PBN) and its parent PetroBank (PBG) on your to-review list please? I would be very interested in your comments on them.


  2. I've heard of many folks owning this one, but haven't pulled the trigger on it myself.

    Past performance is not always indicative of future performance, but for a steady paycheck, would you not be interested in this Susan?

    Don't you think this is a decent choice for an RRSP investment to DRIP synthetically?