Why This Big Buyback Isn't a Long-Term Solution

Edwards Lifesciences investors have had enough headaches over the recent past. The company's stock has spiraled down, exacerbated by the firm's recent downbeat earnings report that showed sales of its Sapien heart device missing Wall Street's expectations. To bring back investor confidence, the company recently announced a $750 million buyback to help stabilize the stock.

But will that be enough? Edwards is still facing a sluggish medical device market, and with competition rising for its Sapien, this company could be in trouble in coming years. Should you believe in Edwards' buyback plan? Motley Fool contributor Dan Carroll and health care analyst Max Macaluso discuss the merits of this company's latest move -- and what Edwards' future in a tough industry has in store.

While you can certainly make huge gains in biotech and pharmaceuticals, the best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

The article Why This Big Buyback Isn't a Long-Term Solution originally appeared on Fool.com.

Fool contributor Dan Carroll and Max Macaluso, Ph.D. have no position in any stocks mentioned. The Motley Fool owns shares of Medtronic. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story