Smith & Nephew Share Discussion Threads

[ianwc] 08/8/2005 21:46

sure it has a high rating, but i don't think it's overvalued, not compared to US companies in the same sector. Besides, SN. always trades at a premium to the FTSE average as it is a prime bid target.

[mickconn11] 08/8/2005 19:14

The chart will have to look at 500.

Good company but overvalued.

[ianwc] 19/7/2005 21:20

some of my charts have disappeared. I will sort it out tomorrow.

[mickconn11] 19/7/2005 20:03

It's rolling over. Results on 4th August.

[penycae] 04/7/2005 15:16

Bought some today at 544.

[mickconn11] 06/6/2005 20:34

Price still holding up well. Any thoughts where it's going.

[mickconn11] 19/5/2005 19:47

The market's been bullish the last few days so SN. has gone up but I'm still sticking with short position. Competion and increasing inquisition into the medical device pricing policy.

[mickconn11] 10/5/2005 18:37

fd sold a few.

[hamsterape] 06/5/2005 10:01

ING upgrade SN. with a price target of 595p. Just anounced on CNBC.

[mickconn11] 04/5/2005 20:16

Belize/Doc.
Yep. That's what I have from Digital Look but I'm also looking at £/$. exchange rate and the whole psychology behind their high rating.

It's often said they're 'cheap' compared with US peers and as such often touted as a takeover target. Maybe their US peers are overvalued... who knows.
I just believe equity market as a whole are expensive and companies on high ratings will suffer more than most if the market turns down.

No criticism of the company itself as I have a load of metal in my leg and I'm very appreciative of what these companies do. It's just a valuation issue.

AGM tomorrow. Let's see what they say.

For the record. I'm short and even more underwater than yesterday.

Cheers. Mick.

[belize1970] 04/5/2005 10:23

Consensus forecasts going forward are 23p/2005 and 27p/2006

[doctor 69] 04/5/2005 06:43

mickconn11

the pe 0f 20 is my own figure. i believe growth this quarter for uk will be >30%. us doing well. market expects growth high teenies i think they will be conservatove for first quarter. your short may be wrong for thursday but i reckin it will be correct for remaining part of year. The whole UK waiting list work that was massive in first quarter up to election is very uncertain if it will contiune. If it does not joint replacments will take a dive in the UK.

WE will see on thursday, just be careful with short short term

[mickconn11] 03/5/2005 20:06

Doc.
pe of 20 for this year is from brokers forecasts which most of the time are generous. This company quite often has exceptional items underneath the headline numbers. They earn alot in the US and if the dollar tumbles so will they. They do not have the market for themselves, check out :BMET, BSX, MDT, SYK, ZMH, GDT.

Agreed that it is an excellent company but I just think the share price has got ahead of it's self.

AGM and Q1s on Thursday.

FWIW I have a short position in this company and also bearish on equity markets as a whole.

Over to you. Cheers.

[doctor 69] 02/5/2005 21:27

mick how can acompany be expensive if it grows at 25% with pe of 20 for this year.

[mickconn11] 28/4/2005 19:46

Hello Doc. Buy them if you like but it's an expensive company. I'm selling them most days.

[doctor 69] 28/4/2005 17:51

I am an orthopaedic surgeon specialising into joint replacments. I beleive the Investigation into Surgeons fees is daft and the FDA are barking up the wrong tree.

S & N are growing most likely quicker than any other orthopaedic company. The sector is rocketing. I personally do not use any S&N joints but what they offer is excellent and gainign market share.

The UK waiting list work is drving the UK market for joints and arthroscopies.

Expect a sparkling quarter for what i can observe

[slogsweep] 26/4/2005 08:10

Have the Feds got their tanks off S&N's lawn then?

[doctor 69] 25/4/2005 22:19

results in a week. last quarter market booming for joint replacements. I should know i put in more than 500 last year. Most companies expect great quarter results. Look at Corin share price.

My guess is profit up >25%

[ianwc] 01/4/2005 07:55

Smith & Nephew drawn into inquiry
By Rosie Murray-West, City Correspondent (Filed: 01/04/2005)


Smith & Nephew, the FTSE 100 woundcare and artificial limb business, said yesterday that it was facing an industrywide inquiry into relationships between surgeons and makers of artificial hips and knees.

The company revealed it was one of a number of businesses that have received a subpoena from a US attorney requesting details of agreements with surgeons in areas such as payment for consultancy and input into design.

A spokesman for the company said it was "surprised" to have been asked for the information, which it would try to provide within a couple of months, but would comply fully.

The spokesman said the company complies with a voluntary code on such payments, and it believes there is nothing wrong in the payments it makes. She added that S&N believes it is important that surgeons have input into ongoing design of the products.

The company's shares slipped 24½ to 497½p, amid fears that the investigation could spark a radical shake-up of the US orthopaedic market, which is by far the most valuable in the world. A shake-up could damage prices and growth rates in the orthopaedic industry. Analysts said the investigation would adversely affect sentiment about the company.

The investigation is believed to focus on between 1,000 and 1,200 physician contracts in the industry, each of which is worth more than $50,000 a year. Other companies involved include Stryker and Johnson & Johnson and Biomet. More companies, including Zimmer, are expected to follow.

One trader said the investigation could be aimed at discovering whether companies have been offering kick-backs for the use of their products.

The industry is expected to say that its relationships with surgeons are critical cogs in the wheel of innovation, which would otherwise slow down.

Paul Kavanagh, of Killik & Co, said: "We think it unlikely that any fines will turn out to be punitive in the context of expected profit this year of about £300m."

Forecasts for the company are not expected to change. S&N is based in London but its orthopaedics business is in Memphis, Tennessee. Implants and products to treat complex bone fractures are made at sites including Birmingham in the UK. The wound management division is based in Hull.

Orthopaedics is the biggest and fastest-growing division of S&N. This is the first time an investigation has been conducted into the selling practices in the orthopaedic industry.

One analyst said that yesterday's share price fall "looked like a bit of an over-reaction".

[liquidkid] 31/3/2005 09:50

This writes off another quarters profits with exceptional legal costs if it evolves into a case. The thing is that unforseen costs are becoming the norm for this company. Then again 5% shifts in its share price are normal too.

PS shouldn't the header read S&N: Charts and News etc. rather than Smiths (group)

[belize1970] 31/3/2005 09:46

Is it a good buy at these levels?

[ianwc] 31/3/2005 08:34

If i recall this was expected, wasn't it?