Update
by Corey Hajim, FORTUNE Magazine

(FORTUNE Magazine) - What we said

In "Stocks to Sink Your Teeth Into" (Nov. 28, 2005), we argued that dental-supply companies were a good baby-boom bet for investors--the demographic momentum of health care without the headaches of heavy regulation and pricing pressure. We cited two stocks with low-double-digit profit expectations and opportunities to expand into specialty areas with higher margins and grow through acquisition: Dentsply (Research) (XRAY) at $57 and Sybron (Research) (SYD) at $43.

What happened

No cavities here. Sybron, the smaller of the two, popped 10% on news that Danaher is offering to acquire it at $47 a share. Dentsply is up 3% to $59, and industry trends still look good. The aging population is growing, and people are spending more on their teeth.

Product innovation in the sector continues, helping a shrinking dentist population address increasing demand. In addition, Dentsply remains the market leader in most product areas, has a large sales force and an impressive R&D pipeline, and should benefit from an upswing in the German market, which accounted for 21% of sales in 2005. While Sybron may get a competitive boost from a new, powerful parent company, Dentsply has "a long history of successfully operating in the highly competitive dental industry," says Robert W. Baird analyst Suey Wong, who expects 5% to 6% internal growth in 2006. Still looks like a good buy to us Top of page

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.