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.

July 25, 2011 - Teleflex Incorporated (TFX-NYSE) primarily develops, manufactures, and supplies single-use medical devices used by hospitals and healthcare providers worldwide. The company's Medical segment offers disposable medical products for critical care that includes medical devices used in critical care procedures for vascular access, respiratory care, anesthesia and airway management, treatment of urologic conditions, and other specialty procedures; and devices used in the treatment of patients with severe cardiac conditions, including intra aortic balloon pump systems and intra aortic balloon catheters and accessories.

In addition, this segment designs and manufactures instruments and devices for other medical device manufacturers, as well as customized medical instruments, implants, and components.

Its Aerospace segment provides cargo handling systems and equipment under the Telair International brand, including on-board automated cargo-loading systems for wide-body aircraft; baggage-handling systems for narrow body aircraft; and aftermarket spare parts and repair services.
This segment also offers cargo containment devices for air cargo and passenger baggage under the Nordisk brand.

The company sells through a direct sales forces, independent representatives and distributor networks; and aerospace products through field representatives and distributors. Teleflex Incorporated was founded in 1938 and is based in Limerick, Pennsylvania.

One of the problems in having the industrial based services and products was that the company suffered (or prospered) as the business cycle rippled through the economy. When times were good, they were great. When they were bad, well, they were bad. It affected profits and created volatility in earnings. That is about to change. Expect future earnings to be more predictable....and more robust.

For example, over the last 3 years, as the economy struggled, TFX saw a hit to its earnings in 2009. Earnings per share (EPS) went from $4.05 in 2008, to $3.64, then rebounded last year to $3.93. This year, 3 analysts have a consensus view of $4.07 for EPS, then $4.44 for 2012. The next earnings will be for the second quarter and announced on July 27. Look for 90 cents a share vs $1.00 last year in the second. In the third quarter expect $1.06 compared to $1.08 last year in the third.

Investors have taken notice of the new focus. The stock is up 7% in the last 3 months as the company continues to show its serious about shedding industrial related products and services. Analysts believe the company is set to report record earnings for the next several years as the charge offs related to old divisions will no longer deplete the solid growth in the medical group.

One acquisition made in medical devices was Arrow International. Arrow was under scrutiny by the FDA (Federal Drug Administration) for its quality systems control before TFX bought it. Since the purchase, regulators have seen improvements and stated that their concerns had been sufficiently addressed. That's one small cloud that's no longer overhanging the stock.

Essential numbers: Forward P/E is 13.8. Price to sales ratio is 1.40. Price to book is 1.35. Book value is $46.87. In the last 12 months, Operating margin was 14.50% and Profit margin was 13.23%. Return on equity was 6.32% and Return on assets was 4.43%. Revenues were $1.82 billion. Total cash is $202.3 million for $5.02 a share. Total debt is $873.70 million. Total debt to equity is 46.25%. Current ratio is 2.71. There are 40.28 million shares Outstanding with a Float of 39.97 million. Insiders own .74% of the stock. Institutions have 87.50% of the Float. The dividend this year will be $1.36 for a yield of 2.2%. The Payout ratio is 23% of earnings.

Teleflex is about conclude shedding divisions that were erratic in their earnings' performance and grow through the strength of medical devices. Demographics suggest demand for its products will only increase as the population skews toward an older population needing more medical attention. Expect this stock to show higher EPS, and most likely, a higher stock price as each quarter unfolds.

- Company Web site: www.teleflex.com