Will Stryker's Acquisition Spree Strike It Rich?

Stryker's pushing hard for mergers and acquisitions to expand its reach both at home and across the globe, but will this pay off for eager investors?

Feb 24, 2014 at 2:30PM

Orthopedics giant Stryker's (NYSE:SYK) impressed Wall Street in the early part of 2014, but this company is looking ahead to more than just the good feelings from its latest earnings report. Stryker is interested in growth -- and it is looking to buy its way to better results by snapping up small and innovative firms that can give it a leg up on its competition.

Stryker made waves last year when it acquired robotic surgery maker MAKO Surgical, and 2014's only brought more of a buying bonanza from this medical device giant. This past week, Stryker hit the headlines again by picking up German surgical tools firm Berchtold Holdings, a move it expects to boost its fast-growing endoscopy division. It's a much smaller deal than the MAKO buy, especially for a company of Stryker's size, with a market cap of more than $30 billion. But the acquisition of Berchtold gives a big boost to one of Stryker's under-the-radar growth drivers in endoscopy and highlights the company's M&A focus, something that's likely to dominate this company's news in the coming year.

Will Stryker's acquisitions drive reward investors, though? Motley Fool contributor Dan Carroll tells you what to expect from this company's latest buy -- and how Stryker's future could help the leading medical device stock surge.

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Dan Carroll has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

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The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

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KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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