Stryker (SYK): Is It Priced To Buy?

When I think about an individual stock, at least two questions quickly come to mind.  1) What is the quality of the company?  2) Is it priced to buy?  Stryker (SYK) is a company I owned back in the late 1990s and early 2000s.  I’ve always considered it a high quality company.  It certainly has outperformed the S&P 500 over the past 25 years.  I hope this Yahoo! link will show the comparison.  If not, manipulate the graph so you can see the comparison.

Here are two more graphs I would examine before moving on to my individual analysis.  The first I will call the Price/195-Day EMA graph and the second is the PnF graph.  The current yield is 1.57% and the Price/Book is 2.5.  This P/B ratio is moderate, but on the high side if one is looking for deep value stocks, or the type Masters is recommending in this market.  Readers will see my analysis below reinforces this conclusion.

Is the stock priced to buy?  Below is a very conservative projection of what one might expect from this company.

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Curie Portfolio Update: 28 November 2012

Once more it is time to review and update the Curie Portfolio.  The following Dashboard lays out the Strategic Asset Allocation plan and the color coding identifies which asset class are above, below, or within the 25% target limits.  For smaller portfolios I expand the target limits, but for a portfolio of this size, the 25% threshold works quite well.  Since the last review the only transaction, other than recording dividends, was to sell off most of DBC, our commodities ETF.  I did this as DBC slipped below its 195-Day Exponential Moving Average.  Since selling DBC, the price moved up about 20 cents.

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