Aug 22, 2016 – Sean Williams

This year, we’ve witnessed all three major U.S. stock market indexes hit new all-time highs, which is nothing short of amazing considering the year began with the worst two-week tumble in recorded history and culminated with all three major U.S. indexes losing at least 10% of their value through mid-February from the beginning of the year.

But the long-term lesson is simple: The buy-and-hold investor usually triumphs. Since 1950, we’ve borne witness to 35 stocks market corrections of at least 10%, when rounded to the nearest integer, and in each and every instance, we’ve watched as stock market corrections have been buried by economic growth and bull market rallies. Smart investors understand that stock valuations have a tendency to rise over time, which is why they’re always on the lookout for high-quality stocks.

Could this be the first $1 trillion company?

Still, the one psychological mark that continues to be elusive for investors is the $1 trillion valuation mark. You could arguably say the race is on to reach this lofty ceiling, with expected contenders like Apple and Alphabet, the parent company of Google, leading the way. But, don’t ignore healthcare conglomerate Johnson & Johnson (NYSE:JNJ), which currently finds itself among the 10 largest companies in the world with a market valuation of $328 billion as of Friday. If the cards fall in J&J’s favor, it could become the first company to add 12 zeroes behind its valuation.

How, you ask? There are three factors working in its favor.

1. Product inelasticity

Economic cycles are inevitable in the U.S. economy. Although upswings tends to last a bit longer than downswings when we’re talking about bull and bear markets, the U.S. economy has entered a recession, on average, about every six years since 1929. Johnson & Johnson, though, provides products that are considered inelastic, meaning whether the economy is running on all cylinders or struggling, it tends to generate a consistent amount of growth and cash flow. In plainer terms, it’s pretty close to recession-proof.

Think about this from another angle. The consumer can’t choose when they’re going to get sick, or what type of illness they’ll develop. That alone would imply that two of J&J’s three operating segments — pharmaceuticals and medical devices — should do well in a robust or recessionary economy. J&J’s consumer product segment is the only area where some weakness could be observed, but even here we’re talking about consumer health products like Band-Aids that tend to be mostly resistant to downward pricing and demand pressures.

A number of companies with larger current market valuations than J&J are more susceptible to recessions, which could allow Johnson & Johnson to close this valuation gap over time.

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AUG 23, 2016 – Bruce Japsen

As Aetna AET -0.37% and UnitedHealth Group UNH -1.17% retreat next year from most public exchanges under the Affordable Care Act in the face of losses they say they can’t handle, a model is emerging in Florida that may be the answer to caring for patients and turning a profit.

Florida Blue, a Blue Cross and Blue Shield plan, is offering a diverse mix of products statewide on public exchanges. That is in sharp contrast to UnitedHealth and Aetna, two of the nation’s largest health insurers, which will leave public exchanges in most states–including Florida beginning in 2017.

“ Florida Blue offers every metal level ACA product in every county in the state , and we offer four different product networks to satisfy a full range of consumer needs, so the makeup of the plans our members have chosen is very mixed,” Florida Blue spokesman Paul Kluding said in an interview.

Florida Blue said it began to prepare for Obamacare patients and their expensive medical claims three years ago when the rollout of coverage was dogged by technical issues of the Healthcare.gov web site. Back then, Florida Blue opened 20 retail centers across the state to sign up residents and the investment paid off.

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CARLSBAD, Calif., Aug. 24, 2016 (GLOBE NEWSWIRE) — Alphatec Holdings, Inc. (ATEC), the parent company of Alphatec Spine, Inc., a global provider of spinal fusion technologies, today announced the effectiveness of a one-for-twelve reverse stock split of its common stock. The reverse stock split will take effect at 5:00 pm Eastern Time on August 24, 2016 and the Company’s common stock will open for trading on The NASDAQ Global Select Market on August 25, 2016 on a post-split basis.

The reverse stock split is intended to increase the per share trading price of the Company’s common stock to satisfy the $1.00 minimum bid price requirement for continued listing on The NASDAQ Global Select Market. As a result of the reverse stock split, every twelve shares of the Company’s common stock issued and outstanding prior to the opening of trading on August 25, 2016 will be consolidated into one issued and outstanding share. No fractional shares are being issued in connection with the reverse stock split.  Stockholders who would otherwise hold a fractional share of common stock will receive a cash payment in lieu of such fractional share. In connection with the reverse stock split, there will be no change in the nominal par value per share of $0.0001.

Trading of the Company’s common stock on The NASDAQ Global Select Market will continue, on a split-adjusted basis, with the opening of the markets on Thursday, August 25, 2016, under the existing trading symbol “ATEC” but with a new CUSIP number 02081G 201. The reverse stock split reduces the number of shares of the Company’s common stock outstanding from approximately 102.5 million pre-reverse split shares to approximately 8.5 million post-reverse split shares.

The Company has retained its transfer agent, Computershare Trust Company, N.A. (“Computershare”), to act as its exchange agent for the reverse split. Computershare will provide stockholders of record as of the effective date of the reverse stock split a letter of transmittal providing instructions for the exchange of their physical certificates. Stockholders owning shares via a broker or other nominee will have their positions automatically adjusted to reflect the reverse stock split, subject to brokers’ particular processes, and will not be required to take any action in connection with the reverse stock split.

The reverse stock split was approved within a range of one-for-four to one-for-twelve by the Company’s stockholders at the 2016 Annual Meeting of Stockholders held on August 18, 2016, and the specific ratio of one-for-twelve was approved by the Company’s Board of Directors. For more information regarding the reverse stock split, please refer to the Company’s definitive proxy statement filed with the Securities and Exchange Commission on Schedule 14-A on June 22, 2016.

About Alphatec Spine

Alphatec Spine, Inc., a wholly owned subsidiary of Alphatec Holdings, Inc. (ATEC), is a global medical device company that designs, develops, manufactures and markets spinal fusion technology products and solutions for the treatment of spinal disorders associated with disease and degeneration, congenital deformities and trauma. The Company’s mission is to improve lives by delivering advancements in spinal fusion technologies. The Company and its affiliates market products in the U.S. and internationally via a direct sales force and independent distributors.

Additional information can be found at www.alphatecspine.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the reverse stock split of the Company’s common stock and its intended purpose. These forward-looking statements are neither promises nor guarantees of future performance, and are subject to a variety of risks and uncertainties, many of which are beyond the Company’s control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. These risks and uncertainties include, among other things, the factors discussed under the heading “Risk Factors” contained in the Company’s annual report and quarterly reports filed with the Securities and Exchange Commission. All information in this press release is as of the date of the release, and the Company disclaims any obligation to update the information contained in this press release as new information becomes available.

Investor/Media Contact:
Christine Zedelmayer 
Investor Relations 
Alphatec Spine, Inc. 
(760) 494-6610
czedelmayer@alphatecspine.com

By Joe Carlson – August 25, 2016

Medtronic PLC on Thursday reported lower adjusted net income in the most recent quarter and reiterated sales expectations for the year.

The company’s adjusted profit amounted to $1.03 in diluted earnings per share, two cents above Wall Street forecasts. Revenue was nearly in line with what had been expected.

Analysts with Leerink Partners predicted that Medtronic’s stock performance would be affected by the generally high expectations among investors in the med-tech sector overall this quarter.

Investors on the earnings call Thursday asked about the timing of Medtronic’s announcement Tuesday that it had completed its $1.1 billion acquisition of HeartWare, whose high-end heart pumps treat advanced heart failure by helping pump blood through the body. The HeartWare deal was originally projected to close by October.

“We really felt that we were in a position where we were getting critical mass around our expertise in heart failure,” chief executive Omar Ishrak said. “Where HeartWare was positioned as a company, we felt that we could add immediate value … We felt that this was absolutely the right time.”

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