Thoughts on BSX? I normally prefer value stocks with a dividend (no dividend here), but I still find this very interesting at present price $44.23. The assumption is capital is rather being used for growth.
Interesting to note that when the share price was last previously sub-$45 (2022), Sales were $13B. Now over $20B.
The last Value Line review (5/8/26) it was at $59.95. Boston completed 80% of a $2B ASR (accelerated share repurchase) 5/18/26 at about $53/share. Now its $44.23, 50% below the $90 level in January when they announced the $14.5B acquisition of Penumbra (PEN). Even at $60 Value Line said BSX offered "above average capital appreciation potential over the 2029-2031 time frame"
**How can we talk about Value Investing without talking about earnings right?** Value Line EPS estimates: $3.25 this year and $3.50 next year. Versus $3.06 last year and $2.51 the year before. That's what I like to see.
This is some strong stuff : announcing a $14.5B (mostly cash) acquisition, then a $2B ASR while the acquisition is pending.
Penumbra acquisition announcement 1/15/26:
[https://news.bostonscientific.com/2026-01-15-Boston-Scientific-announces-agreement-to-acquire-Penumbra,-Inc](https://news.bostonscientific.com/2026-01-15-Boston-Scientific-announces-agreement-to-acquire-Penumbra,-Inc)
ASR announcement 5/18/26:
[https://news.bostonscientific.com/2026-05-18-Boston-Scientific-enters-into-2-billion-accelerated-share-repurchase-agreement](https://news.bostonscientific.com/2026-05-18-Boston-Scientific-enters-into-2-billion-accelerated-share-repurchase-agreement)
Penumbra shareholders have the option of receiving 3.9 shares of BSX in exchange for each PEN share, OR, $374 cash. At the time the offer rolled out, BSX was about $90. Obviously PEN shareholders will now take the cash, so BSX will end up with a little more debt but zero shares issued (no dilution). If there are any shareholders locked in to receiving shares they would no longer be happy but I don't think that is the case. The purchase terms are a little more complex than this, I won't get into that.
Also worth noting; 3 different Directors bought open market, last month, at $55-57.
