AbbVie's Shares Are More Appealing Than Abbott's Following The Spin-Off [View article]
>>> I forsee ABT being the next JNJ, stable and predictable with steady growth and dividend increases.<<<
The old ABT was a similar business model to that of JNJ. Drugs are about 37-38% of JNJ.
>>>ABBV is riskier due to its dependence on Humira but the dividend is certainly attractive and I have faith the pipeline is deep enough to make up for it when it loses patent protection.<<<...
Does ABBV have the critical mass to continue to fund R&D in a world that has the likes of PFE, MRK, NVS, & SNY as its competition?
Dividend Star Abbott Labs Splitting Into 2 Companies: We Like The Decision [View article]
Then let the dedicated workers meet with investment bankers and venture capitalists to raise the money to take the company private. In turn, they could run the company for their own benefit.
Dividend Star Abbott Labs Splitting Into 2 Companies: We Like The Decision [View article]
Sustainable dividends can only be driven by earnings. What evidence (conclusive or persuasive) exists that these entities can produce greater earnings separately than they can combined?
Combined, there is the synergy of cash flow from consumer products and devices funding pharma research.
Dividend Star Abbott Labs Splitting Into 2 Companies: We Like The Decision [View article]
I did not wait and see. I dumped my position in the premarket as soon as the spin off was announced. ABT was a pillar in my healthcare market basket along with JNJ. Both sell for better multiples than MDT, MRK, and PFE, which are also in my healthcare market basket, but in smaller positions.
ABT's research-driven pure-play "pharmaceutical business {that} will have sales of about $18 billion, about half of which will come from Humira" is not in a league with PFE, MRK, or LLY or BMY and will not have the critical mass to compete with them. Perhaps PFE or MRK will acquire them, but I don't invest on wishful thinking.
Can their other businesses achieve P/E's of BAX or BSX, which are a shade higher than ABT's multiple? Will they achieve no more than the multiple of MDT? What will the composite multiple be? I did not want to wait to find out. $56 (ex-dividend) seemed like a good exit point.
Abbott Labs Delivers Solid Growth And Hefty Yield At A Low Valuation [View article]
smurf, you're absolutely right. ABT currently sells at 10.6X next year's earnings. JNJ sells at 11.9X next year's earnings. PFE and MDT sell at 8.8X and 8.4X earnings, respectively. What is the rationale that splitting the company into two pieces will make it better than ABT is as one entity? The more I think about it, the better my $56.00 ex-dividend exit looks.
Abbott Labs Delivers Solid Growth And Hefty Yield At A Low Valuation [View article]
Sorry to differ guys, but I just liquidated my position in ABT. In premarket trading I was able to get $56.00.
ABT was selling at an 11.3X multiple, which was far better than those of PFE, LLY, and MRK (8X-9X). Their pharmaceutical division will have to compete in that arena without the stable cash flow to fund research that devices and diagnostics, and consumer products provided. I don't know if they can keep up with those players. Maybe they can, but they sure won't defeat them by earning a higher multiple. I added a bit to my JNJ position as I believe they are the best positioned health care company given their diversity and size.
I also added to my postions in PG, UTX, HON, and three utilities to lighten up on health care.
Just One Stock: The Healthcare Giant With a Low Multiple and Solid Yield [View article]
With many companies, we are buying intellectual property. It is the thought processes and not the buildings and machinery where value lies. The same can be said of technology companies and, even, defense and aerospace companies. Goodwill is not a problem.
Just One Stock: The Healthcare Giant With a Low Multiple and Solid Yield [View article]
An well thought and well presented article. This was analysis of the fundamentals of the company and its competitive environment. It went above and beyond presentations of numbers for the past ten or twenty years with explicit or implicit statements that trends will continue.
While there is no empirical evidence to quantify this, the news of the settlement is not that new and is already baked into the price of both companies.
I prefer ABT and JNJ to pure-play pharmas as they are not totally leveraged to research-driven products. I don't think anyone would argue with Jim Cramer's statement that diversification is the only free lunch.
There are many stocks that I would like to buy at 25% less than recent prices. In the case of ABT, would you expect it to decline to say $38.50 in light of any foreseeable catalyst regarding ABT or would you expect an overall market decline of 25%? How would ABT's beta of .26 play into a scenario of an overall decline?
AbbVie's Shares Are More Appealing Than Abbott's Following The Spin-Off [View article]
The old ABT was a similar business model to that of JNJ. Drugs are about 37-38% of JNJ.
>>>ABBV is riskier due to its dependence on Humira but the dividend is certainly attractive and I have faith the pipeline is deep enough to make up for it when it loses patent protection.<<<...
Does ABBV have the critical mass to continue to fund R&D in a world that has the likes of PFE, MRK, NVS, & SNY as its competition?
Dividend Star Abbott Labs Splitting Into 2 Companies: We Like The Decision [View article]
Dividend Star Abbott Labs Splitting Into 2 Companies: We Like The Decision [View article]
Dividend Star Abbott Labs Splitting Into 2 Companies: We Like The Decision [View article]
Combined, there is the synergy of cash flow from consumer products and devices funding pharma research.
Apart, there will be incremental G&A costs.
Dividend Star Abbott Labs Splitting Into 2 Companies: We Like The Decision [View article]
ABT's research-driven pure-play "pharmaceutical business {that} will have sales of about $18 billion, about half of which will come from Humira" is not in a league with PFE, MRK, or LLY or BMY and will not have the critical mass to compete with them. Perhaps PFE or MRK will acquire them, but I don't invest on wishful thinking.
Can their other businesses achieve P/E's of BAX or BSX, which are a shade higher than ABT's multiple? Will they achieve no more than the multiple of MDT? What will the composite multiple be? I did not want to wait to find out. $56 (ex-dividend) seemed like a good exit point.
Abbott Pharma Has A Right To Be Worried [View article]
Remember that everything is good or bad only when compared to what else there is.
Abbott Labs Delivers Solid Growth And Hefty Yield At A Low Valuation [View article]
Abbott Labs Delivers Solid Growth And Hefty Yield At A Low Valuation [View article]
ABT was selling at an 11.3X multiple, which was far better than those of PFE, LLY, and MRK (8X-9X). Their pharmaceutical division will have to compete in that arena without the stable cash flow to fund research that devices and diagnostics, and consumer products provided. I don't know if they can keep up with those players. Maybe they can, but they sure won't defeat them by earning a higher multiple. I added a bit to my JNJ position as I believe they are the best positioned health care company given their diversity and size.
I also added to my postions in PG, UTX, HON, and three utilities to lighten up on health care.
Just One Stock: The Healthcare Giant With a Low Multiple and Solid Yield [View article]
Just One Stock: The Healthcare Giant With a Low Multiple and Solid Yield [View article]
Long: ABT
Abbott Labs: Strong Management, Balance Sheet, Growth and Dividends [View article]
I prefer ABT and JNJ to pure-play pharmas as they are not totally leveraged to research-driven products. I don't think anyone would argue with Jim Cramer's statement that diversification is the only free lunch.
Long ABT and JNJ
Abbott Labs: Strong Management, Balance Sheet, Growth and Dividends [View article]
Abbott Labs: Strong Management, Balance Sheet, Growth and Dividends [View article]
Long ABT