Tuesday, April 2, 2013

"I am still finding value out there with the split stock of Abbott Laboratories (Symbol ABT) with its break off from ABBVIE"

Dow Jones Industrial Average 14,578.54 (UP)  Week ending 03-29-2013

Abbott Laboratories (Symbol ABT, $35.25) is one of the companies that came out of the company dividing itself into Abbott Labs and ABBVIE. Abbott Laboratories engages in the discovery, development, manufacture and sale of a broad and diversified line of health care products. It seems to have the primary focus on the businesses of Nutrition, similar to Mead Johnson Nutrition and DuPont, but much more diversified.  The pharmaceutical research and businesses went to ABBVIE.

Abbott Laboratories is projecting 2013 earnings of $2.02 per share and 2014 earnings of $2.22 for 2014. The company currently has a return on equity of 23.19% and a PEG ratio of 1.36, so it fits within my buying criteria.

To do the company justice,  you really need to read the ABBOTT Investor Roadshow Presentation at this link:                         Roadshow Presentation for the Abbott Labs

This $23 Billion dollar powerhouse has lots of headroom for growth, as you will see in their presentation.  The good news is that most people have not figured it out yet, so you can purchase it at a PE of 9. It looks like the cash dividend will be around $0.56 per share. (1.6% at $35.00 a share)

We haven't even talked about their Diagnostics business!   Better pickup some shares of ABT tomorrow before everyone else finds out how great a company they are going to become.  

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