Thursday, July 3, 2014

"All of us Baby Boomers are getting older and we will need the cardio products from St. Jude Medical, symbol STJ, to keep our "tickers" going strong".

Dow Jones Industrial Average 16,851.84 (Down) Week ending 06-27-2014

St. Jude Medical Inc. (Symbol STJ, 69.85)

"More than 70 years ago, Danny Thomas, then a struggling young entertainer with a baby on the way, visited a Detroit church and was so moved during the Mass, he placed his last $7 in the collection box. With only a few coins left in his pocket, Danny prayed for a way to pay the looming hospital bills. The next day, he was offered a small part that would pay 10 times the amount he'd given to the church. Danny had experienced the power of prayer.
Two years later, Danny had achieved moderate acting success in Detroit, but he was struggling to take his career to the next level. Once again, he turned to the church. Praying to St. Jude Thaddeus, the patron saint of hopeless causes, Danny asked the saint to "help me find my way in life, and I will build you a shrine." from the St. Jude Children's research hospital website.

Us baby boomers are all going to need help soon because our parts are wearing out like the old car that I drive. Us boomers know who Danny Thomas the actor is above, but our children probably don't remember him. Here is the company that he started based on his promise:
"St. Jude Medical, Inc. develops, manufactures and distributes cardiovascular medical devices for the global cardiac rhythm management, cardiovascular and atrial fibrillation therapy areas and neuro-stimulation medical devices for the management of chronic pain.".  

St, Jude has a PEG Ratio of 1.73 and a Return on Equity of 17.60%, so it fits in fairly well with my blog investment criteria, which is a rating of less than 1.5 PEG and greater than 15% ROE.

The company employees 15,000 people and is based in St. Paul, Minnesota. The company has Revenues of $5.53 Billion and produced $945 Million in Levered Free cash flow.
The stock has a 1.55% dividend  yield and has a PE Ratio of 16.13. The company has a strong Current Ratio of 3.73, which will help you sleep well at night owning it.

The company boasts a One Year trailing twelve month stock price return of 52.33%.
The company has had 3-5 year earnings growth of 10.10 %. The 2014 earnings are looking like $3.99 per share.

 STJ has an earnings rating in the Investors Business Daily, (IBD), of 76.

Breaking News: The DOW Jones just broke 17,000 as I am typing here. 

I think this is a great steady growth company that is not in the news everyday, with well accepted products, similar to a stock like AMGEN, (Symbol AMGN), that you can buy and stash away in your IRA portfolio and not have to worry about it. It will certainly do better than idle cash or a money market account. 

Have a great Independence Day,


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