On March 19, Bloomberg reported that Warren Buffett, Chairman and CEO of Berkshire Hathaway, is seeking to spend $5 billion to $20 billion on an acquisition. He prefers “simple” businesses with pretax profit exceeding $75 million, “consistent earnings power,” “good” returns on equity and little or no debt. Bloomberg went on and stated that there are 50 U.S. companies with that much market value and profit, a return on equity exceeding 10 percent and a debt-to- equity ratio less than 50 percent, according to Bloomberg’s own data.
It is fool’s game to speculate on which of the 50 companies that Berkshire Hathaway will acquire. Each company has to stand on its own investment merit regardless what Warren Buffett may or may not make a move on it.
GuruFocus dug into the list of companies and present information on company’s business, ownership of the Investment Gurus, and trade activity of insiders. The companies are grouped according to industries they operate in. This part we treat threee medical equipment companies: Covidien Ltd. (COV, Financial)Â , St. Jude Medical Inc. (STJ, Financial)Â , Zimmer Holdings Inc. (ZMH, Financial)Â
Covidien Ltd. (COV)
Covidien is a healthcare products company that creates medical solutions for better patient outcomes. Covidien manufactures distributes and services a diverse range of product lines including Surgical Devices, Energy-Based Devices, Respiratory and Monitoring Solutions, Patient Care and Safety Products, Imaging Solutions, Pharmaceutical Products, Medical Supplies, and Retail Products.
Covidien Ltd. has a market cap of $16.95 billion; its shares were traded at around $33.63 with a P/E ratio of 11.72 and P/S ratio of 1.71. The dividend yield of Covidien Ltd. stocks is 1.9%.
Covidien Ltd. is owned by 7 Gurus. 2 Gurus Initiated Positions in COV: Edward Owens bought 600,000 shares in the quarter that ended on 12/31/2008, which is 0.12% of the $17.62 billion portfolio of Vanguard Health Care Fund. George Soros bought 84,000 shares in the quarter that ended on 12/31/2008, which is 0.1% of the $3.06 billion portfolio of Soros Fund Management LLC.
1 Guru Increased Positions in COV: Richard Aster Jr owns 685,000 shares as of 12/31/2008, an increase of 12.07% from the previous quarter. This position accounts for 1.28% of the $1.94 billion portfolio of Meridian Fund.
5 Gurus Kept Positions in COV Unchanged or Slightly Adjusted: Richard Aster Jr owns 685,000 shares as of 12/31/2008, which accounts for 1.28% of the $1.94 billion portfolio of Meridian Fund. Robert Olstein owns 314,325 shares as of 12/31/2008, which accounts for 2.4% of the $474 million portfolio of Olstein Financial Alert Fund. John Keeley owns 140,257 shares as of 12/31/2008, which accounts for 0.08% of the $6 billion portfolio of Keeley Fund Management. John Rogers owns 230,871 shares as of 12/31/2008, which accounts for 0.2% of the $4.14 billion portfolio of ARIEL CAPITAL MANAGEMENT LLC. Dodge & Cox owns 12,811,219 shares as of 12/31/2008, which accounts for 0.71% of the $65.51 billion portfolio of Dodge & Cox.
4 Gurus Sold Out COV: David Dreman sold out his holdings in the quarter that ended on 12/31/2008. Chris Davis sold out his holdings in the quarter that ended on 12/31/2008. HOTCHKIS & WILEY sold out his holdings in the quarter that ended on 12/31/2008. Richard Pzena sold out his holdings in the quarter that ended on 12/31/2008.
St. Jude Medical Inc. (STJ)
St. Jude Medical Inc. is to making life better for cardiac neurological and chronic pain patients worldwide through excellence in medical device technology and services. The Company has five major focus areas that include cardiac rhythm management atrial fibrillation cardiac surgery cardiology and neuromodulation.
St. Jude Medical Inc. has a market cap of $13.05 billion; its shares were traded at around $37.71 with a P/E ratio of 16.4 and P/S ratio of 2.99. St. Jude Medical Inc. had an annual average earning growth of 19.5% over the past 10 years. GuruFocus rated St. Jude Medical Inc. the business predictability rank of 4.5-star.
St. Jude Medical Inc. is owned by 6 Gurus. 2 Gurus Initiated Positions in STJ: Richard Snow bought 648,451 shares in the quarter that ended on 12/31/2008, which is 0.93% of the $2.29 billion portfolio of Snow Capital Management, L.P.. John Paulson bought 1,000,000 shares in the quarter that ended on 12/31/2008, which is 0.54% of the $6.07 billion portfolio of Paulson & Co..
1 Guru Increased Positions in STJ: John Hussman owns 2,000,000 shares as of 12/31/2008, an increase of 700% from the previous quarter. This position accounts for 1.96% of the $3.37 billion portfolio of Hussman Economtrics Advisors, Inc..
2 Gurus Kept Positions in STJ Unchanged or Slightly Adjusted: Ken Heebner owns 572,900 shares as of 12/31/2008, which accounts for 0.27% of the $6.87 billion portfolio of CAPITAL GROWTH MANAGEMENT LP. Edward Owens owns 9,010,900 shares as of 12/31/2008, which accounts for 1.69% of the $17.62 billion portfolio of Vanguard Health Care Fund.
1 Guru Reduced Positions in STJ: Jean-Marie Eveillard owns 757,998 shares as of 12/31/2008, a decrease of 25.18% of from the previous quarter. This position accounts for 0.33% of the $7.54 billion portfolio of Arnhold & S. Bleichroeder Advisers, LLC. 1 Guru Sold Out STJ: Jean-Marie Eveillard sold out his holdings in the quarter that ended on 12/31/2008.
Recent Trades of St. Jude Medical Inc. by CEO: Sell: President, CEO & Chairman, Director Daniel J Starks sold 80,000 shares of STJ stock on 02/05/2009 at the average price of $36.82; the price of the stock has increased by 2.42% since.
Recent Trades of St. Jude Medical Inc. by Directors and Officers: Sell: President, CRMD Eric S Fain sold 100,000 shares of STJ stock on 02/09/2009 at the average price of $36.81; the price of the stock has increased by 2.44% since. Sell: Group President Michael T Rousseau sold 220,000 shares of STJ stock on 01/29/2009 at the average price of $35.87; the price of the stock has increased by 5.13% since. Sell: Director Stuart Essig sold 6,355 shares of STJ stock on 01/29/2009 at the average price of $36.16; the price of the stock has increased by 4.29% since.
Zimmer Holdings Inc. (ZMH)
Zimmer is a global leader in the design development manufacturing and market of reconstructive orthopaedic implants and fracture management products. Orthopaedic reconstruction implants restore joint function lost to disease or trauma in joints such as knees hips shoulders and elbows. Fracture management products are devices used primarily to reattach or stabilize damaged bone and tissue to support the body's natural healing process.
Zimmer Holdings Inc. has a market cap of $8.41 billion; its shares were traded at around $37.84 with a P/E ratio of 9.37 and P/S ratio of 2.04. Zimmer Holdings Inc. had an annual average earning growth of 24.6% over the past 5 years.
Zimmer Holdings Inc. is owned by 7 Gurus. 4 Gurus Initiated Positions in ZMH: Ronald Muhlenkamp bought 197,760 shares in the quarter that ended on 12/31/2008, which is 1.27% of the $631 million portfolio of Muhlenkamp Fund. John Hussman bought 500,000 shares in the quarter that ended on 12/31/2008, which is 0.6% of the $3.37 billion portfolio of Hussman Economtrics Advisors, Inc.. Richard Perry bought 64,600 shares in the quarter that ended on 12/31/2008, which is 0.38% of the $681 million portfolio of Perry Capital. David Dreman bought 35,213 shares in the quarter that ended on 12/31/2008, which is 0.02% of the $7.73 billion portfolio of Dreman Value Management.
1 Guru Increased Positions in ZMH: Robert Olstein owns 192,000 shares as of 12/31/2008, an increase of 28.51% from the previous quarter. This position accounts for 1.64% of the $474 million portfolio of Olstein Financial Alert Fund.
2 Gurus Kept Positions in ZMH Unchanged or Slightly Adjusted: Jean-Marie Eveillard owns 3,823 shares as of 12/31/2008, which accounts for less than 0.01% of the $7.54 billion portfolio of Arnhold & S. Bleichroeder Advisers, LLC. Ron Baron owns 514,950 shares as of 12/31/2008, which accounts for 0.2% of the $10.58 billion portfolio of Baron Funds.
It is fool’s game to speculate on which of the 50 companies that Berkshire Hathaway will acquire. Each company has to stand on its own investment merit regardless what Warren Buffett may or may not make a move on it.
GuruFocus dug into the list of companies and present information on company’s business, ownership of the Investment Gurus, and trade activity of insiders. The companies are grouped according to industries they operate in. This part we treat threee medical equipment companies: Covidien Ltd. (COV, Financial)Â , St. Jude Medical Inc. (STJ, Financial)Â , Zimmer Holdings Inc. (ZMH, Financial)Â
| Symbol | Company | P/E | P/S | P/B | Yield (%) | ROA (%) | ROE (%) | Operating Margin (%) | Debt to Equity (%) |
| COV | Covidien Ltd. | 11.30 | 1.70 | 2.10 | 1.90 | 9.09 | 18.98 | 14.52 | 0.39 |
| STJ | St. Jude Medical Inc. | 16.10 | 2.90 | 3.90 | 0 | 13.97 | 24.50 | 18.38 | 0.35 |
| ZMH | Zimmer Holdings Inc. | 9 | 2 | 1.40 | 0 | 13.12 | 16.44 | 22.43 | 0.08 |
Covidien Ltd. (COV)
Covidien is a healthcare products company that creates medical solutions for better patient outcomes. Covidien manufactures distributes and services a diverse range of product lines including Surgical Devices, Energy-Based Devices, Respiratory and Monitoring Solutions, Patient Care and Safety Products, Imaging Solutions, Pharmaceutical Products, Medical Supplies, and Retail Products.
Covidien Ltd. has a market cap of $16.95 billion; its shares were traded at around $33.63 with a P/E ratio of 11.72 and P/S ratio of 1.71. The dividend yield of Covidien Ltd. stocks is 1.9%.
Covidien Ltd. is owned by 7 Gurus. 2 Gurus Initiated Positions in COV: Edward Owens bought 600,000 shares in the quarter that ended on 12/31/2008, which is 0.12% of the $17.62 billion portfolio of Vanguard Health Care Fund. George Soros bought 84,000 shares in the quarter that ended on 12/31/2008, which is 0.1% of the $3.06 billion portfolio of Soros Fund Management LLC.
1 Guru Increased Positions in COV: Richard Aster Jr owns 685,000 shares as of 12/31/2008, an increase of 12.07% from the previous quarter. This position accounts for 1.28% of the $1.94 billion portfolio of Meridian Fund.
5 Gurus Kept Positions in COV Unchanged or Slightly Adjusted: Richard Aster Jr owns 685,000 shares as of 12/31/2008, which accounts for 1.28% of the $1.94 billion portfolio of Meridian Fund. Robert Olstein owns 314,325 shares as of 12/31/2008, which accounts for 2.4% of the $474 million portfolio of Olstein Financial Alert Fund. John Keeley owns 140,257 shares as of 12/31/2008, which accounts for 0.08% of the $6 billion portfolio of Keeley Fund Management. John Rogers owns 230,871 shares as of 12/31/2008, which accounts for 0.2% of the $4.14 billion portfolio of ARIEL CAPITAL MANAGEMENT LLC. Dodge & Cox owns 12,811,219 shares as of 12/31/2008, which accounts for 0.71% of the $65.51 billion portfolio of Dodge & Cox.
4 Gurus Sold Out COV: David Dreman sold out his holdings in the quarter that ended on 12/31/2008. Chris Davis sold out his holdings in the quarter that ended on 12/31/2008. HOTCHKIS & WILEY sold out his holdings in the quarter that ended on 12/31/2008. Richard Pzena sold out his holdings in the quarter that ended on 12/31/2008.
St. Jude Medical Inc. (STJ)
St. Jude Medical Inc. is to making life better for cardiac neurological and chronic pain patients worldwide through excellence in medical device technology and services. The Company has five major focus areas that include cardiac rhythm management atrial fibrillation cardiac surgery cardiology and neuromodulation.
St. Jude Medical Inc. has a market cap of $13.05 billion; its shares were traded at around $37.71 with a P/E ratio of 16.4 and P/S ratio of 2.99. St. Jude Medical Inc. had an annual average earning growth of 19.5% over the past 10 years. GuruFocus rated St. Jude Medical Inc. the business predictability rank of 4.5-star.
St. Jude Medical Inc. is owned by 6 Gurus. 2 Gurus Initiated Positions in STJ: Richard Snow bought 648,451 shares in the quarter that ended on 12/31/2008, which is 0.93% of the $2.29 billion portfolio of Snow Capital Management, L.P.. John Paulson bought 1,000,000 shares in the quarter that ended on 12/31/2008, which is 0.54% of the $6.07 billion portfolio of Paulson & Co..
1 Guru Increased Positions in STJ: John Hussman owns 2,000,000 shares as of 12/31/2008, an increase of 700% from the previous quarter. This position accounts for 1.96% of the $3.37 billion portfolio of Hussman Economtrics Advisors, Inc..
2 Gurus Kept Positions in STJ Unchanged or Slightly Adjusted: Ken Heebner owns 572,900 shares as of 12/31/2008, which accounts for 0.27% of the $6.87 billion portfolio of CAPITAL GROWTH MANAGEMENT LP. Edward Owens owns 9,010,900 shares as of 12/31/2008, which accounts for 1.69% of the $17.62 billion portfolio of Vanguard Health Care Fund.
1 Guru Reduced Positions in STJ: Jean-Marie Eveillard owns 757,998 shares as of 12/31/2008, a decrease of 25.18% of from the previous quarter. This position accounts for 0.33% of the $7.54 billion portfolio of Arnhold & S. Bleichroeder Advisers, LLC. 1 Guru Sold Out STJ: Jean-Marie Eveillard sold out his holdings in the quarter that ended on 12/31/2008.
Recent Trades of St. Jude Medical Inc. by CEO: Sell: President, CEO & Chairman, Director Daniel J Starks sold 80,000 shares of STJ stock on 02/05/2009 at the average price of $36.82; the price of the stock has increased by 2.42% since.
Recent Trades of St. Jude Medical Inc. by Directors and Officers: Sell: President, CRMD Eric S Fain sold 100,000 shares of STJ stock on 02/09/2009 at the average price of $36.81; the price of the stock has increased by 2.44% since. Sell: Group President Michael T Rousseau sold 220,000 shares of STJ stock on 01/29/2009 at the average price of $35.87; the price of the stock has increased by 5.13% since. Sell: Director Stuart Essig sold 6,355 shares of STJ stock on 01/29/2009 at the average price of $36.16; the price of the stock has increased by 4.29% since.
Zimmer Holdings Inc. (ZMH)
Zimmer is a global leader in the design development manufacturing and market of reconstructive orthopaedic implants and fracture management products. Orthopaedic reconstruction implants restore joint function lost to disease or trauma in joints such as knees hips shoulders and elbows. Fracture management products are devices used primarily to reattach or stabilize damaged bone and tissue to support the body's natural healing process.
Zimmer Holdings Inc. has a market cap of $8.41 billion; its shares were traded at around $37.84 with a P/E ratio of 9.37 and P/S ratio of 2.04. Zimmer Holdings Inc. had an annual average earning growth of 24.6% over the past 5 years.
Zimmer Holdings Inc. is owned by 7 Gurus. 4 Gurus Initiated Positions in ZMH: Ronald Muhlenkamp bought 197,760 shares in the quarter that ended on 12/31/2008, which is 1.27% of the $631 million portfolio of Muhlenkamp Fund. John Hussman bought 500,000 shares in the quarter that ended on 12/31/2008, which is 0.6% of the $3.37 billion portfolio of Hussman Economtrics Advisors, Inc.. Richard Perry bought 64,600 shares in the quarter that ended on 12/31/2008, which is 0.38% of the $681 million portfolio of Perry Capital. David Dreman bought 35,213 shares in the quarter that ended on 12/31/2008, which is 0.02% of the $7.73 billion portfolio of Dreman Value Management.
1 Guru Increased Positions in ZMH: Robert Olstein owns 192,000 shares as of 12/31/2008, an increase of 28.51% from the previous quarter. This position accounts for 1.64% of the $474 million portfolio of Olstein Financial Alert Fund.
2 Gurus Kept Positions in ZMH Unchanged or Slightly Adjusted: Jean-Marie Eveillard owns 3,823 shares as of 12/31/2008, which accounts for less than 0.01% of the $7.54 billion portfolio of Arnhold & S. Bleichroeder Advisers, LLC. Ron Baron owns 514,950 shares as of 12/31/2008, which accounts for 0.2% of the $10.58 billion portfolio of Baron Funds.
