1 / 9

SYK Pros & Cons, MI

Stockettes’ Portfolio Stock Price Charts - Lessons Learned Looking at when we bought and current situation Stryker (SYK) Sept. 10, 2010 by Etana Finkler. Stryker: current price $38.95 Pros and Cons by Etana 9/12/10 7/21/06 Purchased at $43.53

pberryman
Download Presentation

SYK Pros & Cons, MI

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Stockettes’ PortfolioStock Price Charts - Lessons LearnedLooking at when we bought and current situationStryker (SYK)Sept. 10, 2010 by Etana Finkler

  2. Stryker:current price $38.95 Pros and Cons by Etana 9/12/10 7/21/06Purchased at $43.53 Stryker Corporation (Stryker) is a medical technology company with a range of products in orthopaedics and a presence in other medical specialties. The Company's products include implants used in joint replacement, trauma, spinal and craniomaxillofacial; surgical equipment and surgical navigation systems, endoscopic and communications systems; patient handling and emergency medical equipment, as well as other medical device products used in a variety of medical specialties. Pros: MI: bivio 12; blue quality; green PAR, buy zone; All stars 98%; 5 Star; Aging population will need their products on increasing levels, and are more comfortable with the idea of knee and hip replacements Con's:
 Gov’t regulations probably will be reducing profit margins In bad current economy, hospitals continue to delay spending; patients delay surgery “Although Stryker escaped most of the punishment when the Department of Justice targeted knee and hip providers, it might not be so lucky in future dealings with the DOJ, which has turned its attention to a key growth area for Stryker--the spine market.” My recommendation:

 I recommend that we hold SYK. I consider it a CORE long-term holding, and I have followed this industry now for 16 yrs (Biomet). I would like us to learn to sell high, and get back in low, but since it is low and may trend low for a while, with this strong company, I am willing to ride it down. Support lines for Stryker at $41, $37, $30.50 Sell suggestion: I consider SYK a core holding (see Pros & Cons page) I don’t want to see SYK go BELOW 37 SUPORT I see support at $41, $36, and $30.50 Current price=$46: I suggest we set a conservative 21% TSLO = $36.34 and think about buying more if it goes to that price (buy on + indicators); or set a more aggressive 11% TSLO at $40.94 BUY suggestion: at $37 - $47 if trends change for the better and indicators suggest BUY SYK Pros & Cons, MI

  3. See next slide for this time span SYK 10 year view $43.53 on 7/21/06 10 year trend is UP S&P 500 SYK 10 year view ….www.bigcharts.com date Sept 7, 2010

  4. Notice how the price tracks the gold S&P 500 trend line 07/21/2006: Club bought at $43.53, to replace Biomet (which went private)= great undervalued time to buy SYK !!! 07/21/2006: Club bought at $43.53, to replace Biomet (which went private)= great undervalued time to buy SYK !!! 07/21/2006: Club bought at $43.53, to replace Biomet (which went private)= great undervalued time to buy SYK !!! 1 1 3 4 4 2a 2b 1 SELL indicators (should have set a sell below price) Price line breaks below 50 SMA (2 opportunities to sell) 2a & 2b Price line moves below 200 SMA (SELL indicators) 50 SMA moves below 200 SMA Couldn’t break through resistance of previous highs What we did RIGHT: Rode it up to $72, 12/07 (almost doubled in 14 months) Rode it up again from $30.50 3/09 to $60 in 5/10 (another double in 14 months!) What we did WRONG: Didn’t take our huge gain; rode it DOWN from $72 to $30, in next 16 months Didn’t take 4/2010 gain; AGAIN rode it DOWN from $60 5/10 to $47 in 9/10 Didn’t know TA sell indicators Hadn’t set sell price to protect gains SYK has high volume trading SYK 5 yr buy & sell indicators….www.bigcharts.com 9/7/2010

  5. SYK has high volume trading SYK 3-yr BLANK ….www.bigcharts.com

  6. SELL indicators (should have set a sell below price) Price line breaks below 50 SMA (2 opportunities to sell) 2a & 2b Price line moves below 200 SMA (SELL indicators) 50 SMA moves below 200 SMA Couldn’t break through resistance of previous highs Support lines for Stryker at $41, $37, $30.50 1 1 1 50 SMA 4 2a 3 1 200 SMA 2b 2a 3 SYK has high volume trading SYK 3 yr sell indicators ….www.stockcharts.com

  7. SELL indicators (should have set a sell below price) Price line breaks below 50 SMA (2 opportunities to sell) Price line moves below 200 SMA (SELL! ); sell volume is rising 50 SMA moves below 200 SMA Couldn’t break through resistance of previous highs Support lines for Stryker at $41, $37, $30.50 50 SMA SELL RESISTANCE 200 SMA SUPPORT BUY BUY SELL SYK has high volume trading SYK 3-yr support / resistance….www.stockcharts.com

  8. Resistance Resistance becomes SUPPORT Resistance Sell suggestion: I consider SYK a core holding (see Pros & Cons page) I don’t want to see SYK go BELOW 37 SUPORT I see resistance at $41, $36, and $30; Current price=$46: I suggest we set a conservative 21% TSLO = $36.34 and think about buying more if it goes to that price (buy on + indicators); or set a more aggressive 11% TSLO at $40.94; prevent whiplash but protect my gains? Or just hold? BUY suggestion: at $37 - $47 if trends change for the better and indicators suggest BUY SYK 2-yr TSLO….www.stockcharts.com

  9. SYK 1 yr current view ….www.stockcharts.com

More Related