Abbott Labs (ABT)

Is this a good time to get into health care stocks and what would you recommend? Likes Abbott Labs (ABT-N) very much. Spun off their pharmaceutical R&D business about 2 years ago and split themselves up into 4 different divisions. If looking at global healthcare companies, you can’t go wrong with something like Johnson & Johnson (JNJ-N). Products are cheap and they can easily raise costs. Also, likes Medtronics (MDT-N) which is a device manufacturer.

(A Top Pick Feb 12/13. Up 7.44%.) Still likes this. Likes their branded pharmaceuticals division. Also, have diagnostics and nutritionals. Company increased their dividend by quite a large amount last quarter. Yield of about 2.5%. Trading at an attractive multiple.

Has really been falling. Results were a little mixed. Management was quite cautious and said the 2^nd half was going to be a challenging time, partly because of difficult comparisons and partly because of the stronger US$. He just doesn’t see a catalyst and the price is a little too high for him.

A good stable company. Sold his holdings when they spun off their pharmaceutical division. They are now left with medical devices, nutritional business and their diagnostic business. Have a wonderful record of growing dividends over the years. Very steady and he feels it is underappreciated.

Sold his holdings a few months ago in order to look for other opportunities. Valuations are a little too excessive for him. He prefers to buy in the 12-13 times earnings range. Doesn’t see growth in this one.

Spun off drug side. It is medical devices and has been one of the most consistent growers over the last decade. Reasonably priced, 2.5% yield.

(A Top Pick Nov 26/12. Up 24.63%.) There was a spin out of Abbvie (ABBV-N) from this company

Bought this because he was looking to increase his exposure to healthcare. Not that expensive. Nice diverse portfolio. Good exposure, both in North America and outside. Could be $42 over 12 months.

(A Top Pick Nov 19/12. Up 25.37%.) Spun off their branded pharmaceutical business last year and he offloaded the AbVie (ABBV-N) component and kept this part that was more focused on medical devices and nutritions. Still likes. Increased their dividend by 57%. Most recent quarter showed that they had made 2 acquisitions on the medical devices side in cataract surgery equipment. 3.2% dividend yield.

Adult and infant nutritionals. Generics, very emerging market focused, diversified. Good earnings growth going forward. Very shareholder friendly. Increasing dividend should attract more shareholders.

(Top Pick Oct 11/12, Up 2.37%) Did well with Abvie as well. He sold ABT.

Sold his holdings before the spinoff of their pharmaceutical side into AbbVie (ABBV-N). They are left with the nutritional, diagnostics and medical devices. Trading at about 14 or 15 times earnings. Growing at 11%-13% per year. Very, very stable company and a great core position in your portfolio.

Diversified healthcare company. Recently spun off their pharmaceutical business. Has some decent growth over the next couple of years. Thinks it can get to $42 over a 12-18 time period.

(A Top Pick Sept 4/12. Up 13.65%.) He would like to add to his holdings when he gets the opportunity.

Just moved up stop loss to $34.90 (200 day moving average). They are in the right space. Nutritional component looks to be just in the beginning of a long term uptrend.