Abbott Labs (ABT)

She sold ABv. But ABT-N has a very good basic business. Doesn’t understand why they don’t pay more dividend (1.6%) and thinks they may increase it soon.

Diversified. Have nutritionals, diagnostics (nice solid business), branded generics and medical devices where they have the leading drug eluting stents. 40% of sales are coming from high-growth emerging markets. Room for margin expansion. 1.64% dividend.

(Market Call Minute.) There is a spinoff coming on a restructuring, so be careful about tax implications. When it spins off, buy the medical device manufacturer.

Had a spinoff of their pharmaceutical side and this company now just represents the diagnostic and nutritional business. If you own, wait and see how things settle out for them.

It already had a bump up in price, but he is planning on holding both parts. Buying for new clients.

Splitting as of Jan 2^nd. Trading ‘as is’ in December. ‘New Abbot’ is their nutritional, diagnostics, vascular and diversified business, very solid sales outlooks. Thinks there is more upside in the Drug exploration part. Humera is one of the 5 biggest drugs globally. 5 drugs in clinical trials. A really good pipeline.

You can buy at its model price and when the company splits up it would increase value. The balance sheet has high growth parts buried within it. These smaller parts create more value. The pieces are worth more than the whole. 40 increases in dividends and very shareholder friendly. He would stay with both after the split until you can review balance sheets.

(Market Call Minute) Would sell on the split. It is too complicated to be there with the split.

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.