Abbott Labs (ABT)

12 drugs under patent after a current one comes off patent. A hepatitis drug is about to come out as well. It could hit its 52 week high.

(Market Call Minute) Sell off is because it is going to split itself up which will realize value.

Going to spin off the pharma portion and their nutritional and diagnostic group. When they first announced the spinoff, the stock was in the mid-$50’s so it has done fairly well but it has come down on earnings. You have to be careful with spinoffs as they are technically designed for US holders and US taxation. Sold his holdings about 6 months ago.

2.9% dividend. Going down the path into splitting into two businesses. The pharma business has a higher than industry growth rate. Best performing sector in the market at present. The patent cliff is here and priced into the stock price.

Great quality company. They are splitting their medical devices and pharmaceuticals but if you own, stay the course. Likes the space. Have executed well.

They are going to split off their medical device and their pharmaceutical division. This is in kind of a Hold mode right now until the split comes through. This is a company that has raised its dividend historically. Free cash flow is a very good. When the split comes, hang on to both shares. You’ll probably see your average cost base cut in half.

Has got a really good pipeline and well owned by institutions. Great triple A balance sheet and a good yield. Screens well against S&P stocks. Slight sideways action. Company will be splitting into two components in the future. This will unlock value.

(Market Call Minute.) Broadly diversified healthcare company with proprietary drugs, non-prescription drugs and medical devices. Growing nicely