Sea Change: The Baby Boomers Play
If the ups and downs of Google and Intel are giving you cold sweats at night, it might time to buy and hold stocks that many investors say will benefit from longer term trends unfolding over the course of many years. One of those seismic trends: Baby boomers. They're 78 million strong headed for retirement. But unlike previous generations, these former flower children won't be retiring to rocking chairs. Think rock concerts and jet skis. So what are the companies positioned to keep these boomers healthy and active in their golden years? Trading baby boomers rocking retirement - that's what we're examining in a special series we call Sea Change.
Ray Elliott the CEO of Zimmer Holdings joined the guys via telephone. His company makes implants for knees and hips, common procedures among active boomers. The company's revenues up 10% last quarter on sales of those joint replacements.
Ray Elliott explained in the US market his company sees about 750,000 hip knees ankles and shoulder replacements. The trend is people are starting to do it at a younger age because they know they will recover more quickly.
Dylan asked where he sees growth:
“We’re hoping to grow a lot more in the spine area and in dental,” answered Elliott.
Tim Strazzini said stocks in this space have huge swings because investors have been aware of the aging boomer trend for a while. It’s very competitive area and the stocks may be getting pricey.
Bolling said this stock looks good, but the people making the most money in this space are the orthopedic surgeons. Because Ray Elliott is selling a solid portion of his holdings in Zimmer. "I wouldn’t buy this company," Bolling said.
On MAR 5, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders.
Strazzini: Gold,(MER), LBF
Bolling: Gold, Silver, Soybeans, Short Corn, S&P Futures, short Nasdaq futures, NMX
Najarian Owns (PALM)
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