There are no safe havens in the stock market. Every stock carries risk. But some less than others. This column features stocks that have shown one or more of the following characteristics: less volatility, better earnings, larger market caps, safe and increasing dividends. In these times of turmoil, our goal is to show readers better opportunities for investing with fewer risks.

December 1, 2009 - C.R. Bard, Inc. (BCR-NYSE) and its subsidiaries engage in the design, manufacture, packaging, distribution, and sale of medical, surgical, diagnostic, and patient care devices worldwide. It offers vascular, urology, oncology, and surgical specialty products.

Its urology products comprise infection control Foley catheters to reduce the rate of urinary tract infections; surgical slings used to treat stress urinary incontinence; natural and synthetic devices to treat pelvic floor and vaginal prolapse; brachytherapy services, devices, and radioactive seeds used to treat prostate cancer; urine monitoring and collection systems; ureteral stents; fecal incontinence products; and specialty devices for ureteroscopic procedures and stone removal.

The company offers various devices to treat and manage cancers, and other diseases and disorders, including specialty access catheters, ports, vascular access ultrasound devices, and enteral feeding devices. Its surgical specialty products include patches and fixation systems for hernia and other soft tissue repairs; irrigation devices for orthopaedic, laparoscopic, and gynecological procedures; and products for topical hemostasis.

C. R.Bard sells directly and through distributors to hospitals, individual health care professionals, extended care facilities, and alternate site facilities. The company was founded in 1907 and is based in Murray Hill, New Jersey.

If you look at a price chart for C.R. Bard, you see that this stock held up really well last year up until the very end. Then, like every other stock, it took a hit, down about 30% by March of this year. It's starting to climb again. Can it reach and go beyond its old high of $101.60, set just last year?

Earnings will certainly help. They keep setting new records. They've been higher every year since 1997 when earnings per share was 83 cents. In 2006, they were $3.29, then $3.84, followed by $4.44. This year, consensus from 17 analysts is $5.06. Next year, they see $5.69. Fourth quarter earnings are estimated at $1.35, up from $1.19 in the fourth last year. For the first quarter of next year, look for $1.33, ahead of the $1.17 of this year's first.

In the third quarter, revenues were higher in all 4 major operating divisions. Margins expanded as well. Research and Development expenditures went up by 23%. Combined, the company still reported an improvement of 19% to the bottom line for the quarter. And with a higher R&D budget, investors can expect new products to continue to grow sales and net income.

Total sales in 2006 were $1.985 billion followed by $2.202 billion in 2007. Then $2.452 billion in '08. This year, look for $2.525 billion, then $2.950 billion. The global recession has been felt even in the medical world, but most economists see a pick up in 2010 which should reignite better growth for BCR.

The big thing that Bard has going for it is demographics. It makes a lot of medical supplies that the Baby Boomers need. There are a lot of Baby Boomers. And more are coming. These people need more medical care than most other groups. Whether its urinary incontinence, cancer or kidney stones, Bard has a product or device that will help alleviate or eliminate the problem. With many more to come from its strong R&D department.

More numbers: Cash in the bank is $632.1 milllion. Value Line gives the company a Financial Strength rating of A++, its highest. Cash per share is $6.55. Total debt is $150 million or about 6% of capital. Book Value is
$22.17. Price to book is 3.68. Price to sales is 3.17. Forward P/E is 14.40. Operating margin for the last 12 months was 30.28%. Profit margin was 20.21%. Return on equity was 24.52%. There are 96.54 million shares outstanding. The annual dividend is 68 cents. The payout ratio is 13% (dividend/earnings).

C.R. Bard has a lot going for it, most importantly ever increasing earnings, a trait difficult to find these days. While some of the valuations are a bit steep, the stock warrants better than average consideration. The P/E is still reasonable given the company's good track record. Conservative investors should enjoy spending more time with BCR. It's got most of the attributes they like.

Company Web site: www.crbard.com

- Ted Allrich