Dangerous links

We like Boston Scientific, because they are a healthcare company and a specialist in stents. Nevertheless, today we have this: "Six physicians with financial ties to Johnson & Johnson and other heart-device makers will be advising U.S. regulators whether to restrict the use of some products because of potentially lethal side effects" and "The panel members, listed on an FDA Web site Nov. 22, will include Robert Harrington, who runs a Duke University research institute funded by stent makers J&J and Boston Scientific Corp".

We don't like this. To us, this is a bad practice. Let's see, what will say the markets today.

Healthcare stocks

One of the major drivers of services today is healthcare services. We can see a vast horizon of healthcare businesses, but we like particularly the medical devices business: pacemakers, CT, RM, ultrasound, etc.

Boston Scientific is a major medical device's player. Nevertheless, they are in bad shape, even before buying Guidant, another device's company. Sometimes, market makers love mergers and acquisitions, sometimes they don't like.

If we compare Boston Scientific with another medical devices Company, such as Johnson and Jonhson, Boston is a laggard: from 2 years ago, Boston returned - 60% versus Johnson + 10%.

We think future will be better for Boston, particularly because this: "Drug-coated stent makers are confident a Food and Drug Administration advisory panel, convened to examine the safety of the devices, will turn up no new surprises next week" and "Boston Scientific's Taxus and J&J's Cypher are the only two FDA-approved drug-coated stents. The worldwide market for the devices is estimated at more than $5 billion".

Charles Brandes, a billionaire investor, bought Boston some days ago.