Jim Cramer's Portfolios: The Three B's

Three B’s Portfolio
Portfolio Bio: Medical industrial portfolio designed to withstand a weak economy. This portfolio is made up of United States companies that don’t export but still have strong growth prospects domestically.
Portfolio Positions:

Company Name: CR Bard Inc.
Company Symbol: BCR
Company Profile: Medical device maker, controls 65% of the market for peripherally inserted central catheters, 60% hernia repair patches, market leader in foley catheters used to treat urinary tract infections. 80% of Bard’s sale came from markets where Bard was #1 or #2
Speculation:
1. Potential Buyout Candidate
Bard is a potential takeover target. Their large market share would make a takeover nearly impossible for antitrust issues under a democratic White House, forcing any company considering a buyout to act soon.

Slowing Economy
In the face of a slowing economy, consumers will still purchase Bard’s medical supplies. “BCR makes the medical devices that we just can’t live without.”

Cash
Bard has approximately half a billion in cash. ($500,000,000)


Company Name: Becton Dickinson & Co.
Company Symbol: BDX
Company Profile: Produces medical devices and diagnostics. Becton responded to growing American waste lines by providing longer medical needles.
Speculation:

Stock has had a run up, but still has room to go with a robust 1st quarter and increased guidance.


Company Name: Baxter International Inc.
Company Symbol: BAX
Company Profile: Provides a wide range of medical products and services for a diversified income stream.

Speculation:
Cramer asserts that this company’s strength is its diversity. Hemophilia, immune conditions, drug reconstitution sets, IV solutions, drug formulation, packaging kits, and dialysis systems.

Notes: Wait for a pullback before you pull the trigger.