Health and Healthcare
10 CEO's That Need To Leave in 2008: James Tobin of Boston Scientific (BSX, BIIB, JNJ, ABT)
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James Tobin, the CEO of Boston Scientific (NYSE:BSX) is likely to find himself in front of the shareholder firing squad in 2008. In early 2004 this stock was above $40 and had enjoyed an incredible stock performance from the beginning of 2001 to early 2004. But that was then. Shares sit under $13.00 today, and every little rally seems to be reversed by bad news. If you pull up a chart you’ll see a pattern of what looks like a long downward staircase. Tobin has has been with BSX since 1999, and he served as Biogen’s (NASDAQ: BIIB) President & CEO from 1997 to 1999.
With a Harvard M.B.A., Tobin is probably not at all incompetent and we openly admit that there was a period of time that the company flourished. But the current path is not working at all and all of the problems have happened under his tenure and under his guidance.
Co-founder and Chairman Peter Nicholas (Jr.) needs to step back in and get new blood in to run the day to day operations. He has been chairman since 1995 and served as CEO from 1979 to 1999, so he could even perhaps step in as interim-CEO until a replacement is found. Nicolas is only a few years older than Tobin.
We ran a break-up value analysis before certain changes have been made inside the company, and we are reviewing what value can be derived ahead for our Special Situation Investing Newsletter subscribers.
If the company stays on its current path, we might even get to begin featuring Boston Scientific stock for our STOCKS UNDER $10 LETTER. Yep, things seem to be that bad there.
GUIDELINES FOR CEO’s THAT NEED TO GO
Jon C. Ogg
December 7, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
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