Subscriber Alert

    The stock price of Meridian Bioscience (VIVO-$23) traded below the lower boundary of its Buy Value Range.  Accordingly, it is being Removed from the Aggressive Growth Buy List.  VIVO remains above its Stop Loss Price.  The Aggressive Growth Portfolio never bought VIVO, so no action is needed.

      Company Highlight  

      Becton Dickinson produces a wide range of medical devices as well as products for the collection and transport of diagnostic specimens, instruments for analysis and testing for infectious diseases and research and clinical tools for the study of cells.  The company has grown profits and dividends at a 13-15% annual pace over the last 10 years earning a 20%+ rate of return on equity.  The company should sustain its growth via:

(1) growth of safety needle-free products.  BDX is a world leader in this market which is growing at a 12% annual rate globally,

(2)  the safety products are sold at premium prices yet have a very low cost of production, thereby improving margins,

(3) the equally attractive rate of growth of the remainder of its well diversified product line [diabetes care, surgical equipment, ophthalmic systems, diagnostic systems and immunocytometric systems],

BDX is rated A++ by Value Line, has a debt to equity ratio of about 22% and its stock yields 2.0%.

  Statistical Summary

                 Stock      Dividend         Payout      # Increases   
               Yield      Growth Rate     Ratio       Since 1999
 
BDX           2.0%          12               26%             10
Ind Ave       1.3             10*             25                NA  

                Debt/                        EPS Down       Net        Value Line
                  Equity         ROE      Since 1999      Margin       Rating

BDX         22%            22%            0                30%           A++
Ind Ave     15               20             NA                8              NA

*over one half of companies in BDX industry do not pay dividends

   Chart

Note: BDX performance has not been stellar.  The up trend off its December low has been very weak.  And the stock has challenged neither the down trend off it December 2008 high (straight red line) nor its November 2008 high.  The blue line at the bottom is the lower boundary of an up trend dating back to 1994.  The wiggly red line is the 30 moving average.


 
http://finance.yahoo.com/q?s=BDX
10/09

    News on Stocks in Our Portfolios

    Altria (High Yield Portfolio) reported third quarter operating earnings per share of $.48 versus expectations of $.46 and $.42 recorded in the comparable quarter a year ago.

    Eli Lilly (High Yield Portfolio) reported third quarter operating earnings per share of $1.20 versus estimates of $1.02 and $1.04 reported in 2008’s third quarter.

    Boeing (Dividend Growth and High Yield Portfolios) reported a third quarter earnings loss of $2.23 versus forecasts of a loss of $2.12 and earnings of $.96 in the last year’s third quarter.