About Those Over Valued Medical Device Companies

I am still pissed that INGN proved me wrong and took my money. I’ll get you… my pretty. An over valued pig if there ever was one.

As noted earlier, I sold MDT and took the profit. That was in addition to a dividend already collected. Thank you sir.

But speaking of dividends, it occurs to me that many of these pigs are soaked with debt (hello Boston Scientific, my former customer) and yet pay no dividend. It’s just another manifestation of the over valuation as Wall Street spins some kind of yarn about medical devices being some kind of new whiz bang technology play.

BSX is particularly egregious with the following cash/debt figures and a forward PE of 22+ and PS of 5+. Oh, and it’s also got a fair bit of competition from the aforementioned Medtronic, among others.


Meanwhile, the sector’s leadership within broad Healthcare has been burrowing southward for some time now.

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