Stryker 1Q numbers - well diversified

Homer Stryker was a pretty late starter, as far as business formation goes. Born in 1894, he only discovered a decade and a half into his medical career that he was most interested in orthopaedics. Fair enough, rather late than never! And sooner than Ray Croc (the McDonald's guy!). Little did Dr. Homer Stryker know that medical science would get to the point nowadays where the company he founded (and was named after him), Stryker, would be at the point where the company is responsible for Craniomaxillofacial and Spinal implats. We are talking about reconstruction of skeletal structures here, ones in which people can have multiple "parts". Knees, hips, your foot, your ankle, pins in bones, machines that help surgery (Mako), which include truly futuristic technology, after and pre care (ambulance stretchers to beds), and the original power tools business.

It was Homer after all that that patented the oscillating saw, to remove plaster casts. The website under history notes the following (from 1947): "As a result of a late-night brainstorm, Dr. Stryker hit on an idea for a powered cast cutter. The first prototype, created on the premise that an oscillating saw blade cuts hard material but not soft surfaces, incorporates a motor from a malted milk mixer. The once long and laborious process to remove a plaster cast now takes only minutes with the cast cutter. The saw cuts hard cast material, but not human tissue, and is the forerunner to a broad line of surgical instruments." Thanks to Homer not sleeping at night, we can all be grateful for the amazing ranges of tools at surgeons and health caregivers disposal. And technological advances in software and computer based technologies.

The company will leverage off the same healthcare growth that our other investments in the sector will benefit from. At the end of the day, modern technology will save money and boost the outcomes for the better for all parties. Better outcomes from the patient to the healthcare insurance businesses. And definitely allowing the professionals and hospitals to focus on what is important, the outcome. Watch this video (it is obviously from the company) to see what is available to patients, the technological innovations that Stryker supplies to surgeons, for less invasive surgery - Aim Platform, scroll to the bottom of the page.

The business is really well diversified, within their three core divisions, namely MedSurg, Orthopaedics and Neurotechnology and Spine, no one subsegment is more than 14 percent of total sales. In fact, here is the breakdown from the 2016 annual report: Instruments - 14%, Medical - 14%, Endoscopy - 13%, Knees - 13%, Trauma & Extremities - 12%, Hips - 11%, Spine 7%, Neurovascular - 5%, Neuro Powered Instruments - 4% and Craniomaxillofacial at 2%. Various "other" makes up the balance.

MedSurg was the standout, thanks to new products and acquisitions in that area. Growth outside of the US in revenue terms was around ten percent better than the corresponding quarter. The business is essentially still very much a US based one, roughly 30 percent of the business is outside of the US. This is good, it means that their ability to continue to attract big business from other territories. Europe, Canada and Australia, where there are loads of rich people.

I am excited by the business of Stryker. They really are at the (excuse the pun) cutting edge of healthcare technological advances. Less invasive surgeries will lead to more procedures and more importantly for a company like Stryker, more quality equipment sold. Stay long and accumulate on weakness, this is a fabulous business with a very fair share price at current levels. You must own this company in your long term portfolio. It is a must!