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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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.