Seeking Alpha

Ron Sommer  

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  • Against The Grain: Abbott Is Not Worth Your Money Now [View article]
    ABT is a good company with a meaningful dividend. However, neither the dividend nor the pending split tell the whole story. A look at the fundamentals show some deterioration. I see operating margin contraction since 2009 and concomitant contraction in ROE. The dividend payout is 64% of earnings which, for me, is high. Analysts are revising downward forward earnings. ABT is selling at a substantial premium to its industry median on an EV/EBITDA basis.

    I am long ABT but will consider selling in the near future.
    Jan 14, 2012. 12:33 PM | 1 Like Like |Link to Comment
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