Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, December 7, 2012

Article Excerpt

BAXTER INTERNATIONAL INC., $65.07, New York symbol BAX, is buying Gambro AB, a privately held Swedish company that makes dialysis products. Gambro’s main customers are hospitals and clinics. Its equipment nicely complements Baxter’s own dialysis products, which individuals use at home. Baxter can also use its large sales force to increase Gambro’s sales. Baxter will pay $4.0 billion for Gambro when the deal closes in the first half of 2013. That’s equal to 11% of Baxter’s $35.8-billion market cap. The company can comfortably afford this purchase. It held cash of $3.2 billion, or $5.86 a share, on September 30, 2012. Its long-term debt was $5.6 billion, or just 16% of its market cap. As well, Baxter feels that combining factories and other operations can save $300 million a year by 2017. Baxter is a buy. Baxter was recently covered in the December 2012 issue of Wall Street Stock Forecaster. Click here to access it. Baxter was recently covered in the Wall Street Stock Forecaster Hotline for…