AbbVie Inc.

ABBV-N

NYSE:ABBV

94.68
0.83 (0.87%)
AbbVie is a pharmaceutical company that discovers, develops and markets both biopharmaceuticals and small molecule drugs. It originated in 2013 as a spin-off of Abbott Laboratories.
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Analysis and Opinions about ABBV-N

Signal
Opinion
Expert
BUY
BUY
July 28, 2020

Allan Tong’s Discover Picks The good thing about this drugmaker is that its arthritis drug, Humira, has been a runaway success, making up 63% of company revenues. The problem with AbbVie is also Humira–it loses patent protection in American in 2023. Read Top 4 BNN Stock Picks to Buy this Summer for our full analysis.

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AbbVie Inc. (ABBV-N)
July 28, 2020

Allan Tong’s Discover Picks The good thing about this drugmaker is that its arthritis drug, Humira, has been a runaway success, making up 63% of company revenues. The problem with AbbVie is also Humira–it loses patent protection in American in 2023. Read Top 4 BNN Stock Picks to Buy this Summer for our full analysis.

BUY
BUY
July 9, 2020

Healthcare is one of his favourite sectors. 10% growth rate. Value is there. Beta is below S&P. Dividend of 4.7% or so. Good drug pipeline. Covid R&D is pushing the stock up. Allergan acquisition will give EPS a boost.

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AbbVie Inc. (ABBV-N)
July 9, 2020

Healthcare is one of his favourite sectors. 10% growth rate. Value is there. Beta is below S&P. Dividend of 4.7% or so. Good drug pipeline. Covid R&D is pushing the stock up. Allergan acquisition will give EPS a boost.

BUY
BUY
June 17, 2020
It pays a nice dividend and the company is committed to it. The company is hitting its stride. It made a big acquisition that introduced a new business enterprise, focusing on botox. They have the most successful drug in America -- Humara. This is helping to reduce their dependency on revenue from Humara. He recommends it here. Yield 5%
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AbbVie Inc. (ABBV-N)
June 17, 2020
It pays a nice dividend and the company is committed to it. The company is hitting its stride. It made a big acquisition that introduced a new business enterprise, focusing on botox. They have the most successful drug in America -- Humara. This is helping to reduce their dependency on revenue from Humara. He recommends it here. Yield 5%
COMMENT
COMMENT
June 12, 2020

JNJ vs ABBV? He likes JNJ as a long term winner. It may be too expensive. ABBV was a risky company until they purchased Allergan and diversified their business more. ABBV trades at 8.4 times PE and earnings are expected to grow by 8% and have nice, safe dividend. They are still tethered to Humara, which has a lot of generics being developed. He would favor ABBV, although it is a little riskier than JNJ.

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AbbVie Inc. (ABBV-N)
June 12, 2020

JNJ vs ABBV? He likes JNJ as a long term winner. It may be too expensive. ABBV was a risky company until they purchased Allergan and diversified their business more. ABBV trades at 8.4 times PE and earnings are expected to grow by 8% and have nice, safe dividend. They are still tethered to Humara, which has a lot of generics being developed. He would favor ABBV, although it is a little riskier than JNJ.

TOP PICK
TOP PICK
May 12, 2020

Loves it. He shied away from it in the past because its product offering was concentrated. When they were spun-off from Abbot Labs, it was spun-off with the successful rheumetory arthritis drug, Humera, but the drug made up 63% of company revenues, so the risk was high. In the last year, ABBV bought Allergan which should close this quarter after European and US approvals. Allergan is known for Botox. Together, this will be a great company. It trades at less than 9x PE. Pays a fine 5.5% dividend. The merger is accretive immediately. Great freee cash flow. However, they paid $60 billion for Allergan, but they have the cash flow to pay down that debt at very low interest rates. (Analysts’ price target is $96.33)

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AbbVie Inc. (ABBV-N)
May 12, 2020

Loves it. He shied away from it in the past because its product offering was concentrated. When they were spun-off from Abbot Labs, it was spun-off with the successful rheumetory arthritis drug, Humera, but the drug made up 63% of company revenues, so the risk was high. In the last year, ABBV bought Allergan which should close this quarter after European and US approvals. Allergan is known for Botox. Together, this will be a great company. It trades at less than 9x PE. Pays a fine 5.5% dividend. The merger is accretive immediately. Great freee cash flow. However, they paid $60 billion for Allergan, but they have the cash flow to pay down that debt at very low interest rates. (Analysts’ price target is $96.33)

WAIT
WAIT
February 6, 2020
Trades at 38x earnings. Great dividend yield. Prefers something like JNJ, as it has 3 divisions. With pharma, you need these blockbuster drugs. If the pipeline is weak, the stock falls. Much more difficult to own in an election year, as they're the easiest scapegoat. Pharma usually pops up after an election.
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AbbVie Inc. (ABBV-N)
February 6, 2020
Trades at 38x earnings. Great dividend yield. Prefers something like JNJ, as it has 3 divisions. With pharma, you need these blockbuster drugs. If the pipeline is weak, the stock falls. Much more difficult to own in an election year, as they're the easiest scapegoat. Pharma usually pops up after an election.
BUY
BUY
February 3, 2020
He likes it. There's a new uptrend after a long downtrend since early 2018. He's like to see strong volumes and support at $80. If so, it could touch $90.
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AbbVie Inc. (ABBV-N)
February 3, 2020
He likes it. There's a new uptrend after a long downtrend since early 2018. He's like to see strong volumes and support at $80. If so, it could touch $90.
BUY
BUY
January 17, 2020
On international drug pricing, it is one of the proposals from Trump. The reason why it's coming to the forefront is because they haven't been able to accomplish anything. The proposal is to initiate a pilot project. Their highest selling drug, Humira, has concerns of patent dispute. He saw the Allergen acquisition as a positive for diversifying the risk from the potential dispute.
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AbbVie Inc. (ABBV-N)
January 17, 2020
On international drug pricing, it is one of the proposals from Trump. The reason why it's coming to the forefront is because they haven't been able to accomplish anything. The proposal is to initiate a pilot project. Their highest selling drug, Humira, has concerns of patent dispute. He saw the Allergen acquisition as a positive for diversifying the risk from the potential dispute.
COMMENT
COMMENT
November 28, 2019
BMY vs ABBV? Doesn't own either one of them at the moment. Both stocks will probably do just fine over the next couple of years. Bristol Myers acquisition of Celgene will give them new drug applications. Be cautious on the Canadian tax implication in this acquisition. AbbVie on the other end is struggling with drugs that have been in the pipeline for a number of years and will start to face generic competition. Well managed companies. More comfortable with Bristol Myers.
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AbbVie Inc. (ABBV-N)
November 28, 2019
BMY vs ABBV? Doesn't own either one of them at the moment. Both stocks will probably do just fine over the next couple of years. Bristol Myers acquisition of Celgene will give them new drug applications. Be cautious on the Canadian tax implication in this acquisition. AbbVie on the other end is struggling with drugs that have been in the pipeline for a number of years and will start to face generic competition. Well managed companies. More comfortable with Bristol Myers.
TOP PICK
TOP PICK
November 27, 2019
Acquiring Allergan. Knock on it was that Humera made up 60% of revenues. Purchase of Allergan dilutes that concentration, and will be 10% accretive in Year 1. Expected revenue growth of 10%, whereas peer group is 3.1%. Trading at less than 10x. Free cashflow, after the dividend, of over 5%. Compelling opportunity. Yield is 5.34%. (Analysts’ price target is $95.45)
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AbbVie Inc. (ABBV-N)
November 27, 2019
Acquiring Allergan. Knock on it was that Humera made up 60% of revenues. Purchase of Allergan dilutes that concentration, and will be 10% accretive in Year 1. Expected revenue growth of 10%, whereas peer group is 3.1%. Trading at less than 10x. Free cashflow, after the dividend, of over 5%. Compelling opportunity. Yield is 5.34%. (Analysts’ price target is $95.45)
DON'T BUY
DON'T BUY
August 2, 2019
Has gone down a lot due to arthritis drug coming off patent. Earnings have been disappointing which pushed down the price further. Unsure if they can rebuild revenues to the same levels as before. Competition is now coming from generics and biosimilars, and would prefer medical device companies.
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AbbVie Inc. (ABBV-N)
August 2, 2019
Has gone down a lot due to arthritis drug coming off patent. Earnings have been disappointing which pushed down the price further. Unsure if they can rebuild revenues to the same levels as before. Competition is now coming from generics and biosimilars, and would prefer medical device companies.
DON'T BUY
DON'T BUY
July 25, 2019
Avoid this one. Made a plan to do a very large acquisition, because their core line is declining. Allocating capital, and taking on debt, to mask a problem, and that's a red flag. Value trap.
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AbbVie Inc. (ABBV-N)
July 25, 2019
Avoid this one. Made a plan to do a very large acquisition, because their core line is declining. Allocating capital, and taking on debt, to mask a problem, and that's a red flag. Value trap.
COMMENT
COMMENT
July 18, 2019

Issue is that longer run pipeline is coming to an end. The quest is always for the next big drug out there. Trying to buy Allergan, whose big thing is botox. Political pressure on lower drug prices. Monster yield of over 6.5%.

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AbbVie Inc. (ABBV-N)
July 18, 2019

Issue is that longer run pipeline is coming to an end. The quest is always for the next big drug out there. Trying to buy Allergan, whose big thing is botox. Political pressure on lower drug prices. Monster yield of over 6.5%.

COMMENT
COMMENT
July 18, 2019

Good news, bad news. Dividend is beautiful, Q1 beat, cheap valuation, raised outlook for 2019. Problem is it's really levered to Humira, so a one-trick pony. Trying to buy Allergan to diversify. Likes it at a lower level, but cautious. Not really for an RRSP. (Analysts’ price target is $83.70)

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AbbVie Inc. (ABBV-N)
July 18, 2019

Good news, bad news. Dividend is beautiful, Q1 beat, cheap valuation, raised outlook for 2019. Problem is it's really levered to Humira, so a one-trick pony. Trying to buy Allergan to diversify. Likes it at a lower level, but cautious. Not really for an RRSP. (Analysts’ price target is $83.70)

HOLD
HOLD
July 17, 2019
Abbvie has Humira, an $18-20 billion arthritis drug that will lose patent protection. ABBV bought Allergan under pressure to diversify--they needed to. They at 7.5x earnings with little growth after 2021. The Allergan purchase won't add much growth, but will lessen risk; Abbvie won't need to rely so much on Humira for revenues. The Allergan deal isn't done yet, but he likes it. Likes ABBV's dividend.
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AbbVie Inc. (ABBV-N)
July 17, 2019
Abbvie has Humira, an $18-20 billion arthritis drug that will lose patent protection. ABBV bought Allergan under pressure to diversify--they needed to. They at 7.5x earnings with little growth after 2021. The Allergan purchase won't add much growth, but will lessen risk; Abbvie won't need to rely so much on Humira for revenues. The Allergan deal isn't done yet, but he likes it. Likes ABBV's dividend.
BUY
BUY
July 9, 2019
It's come off a lot, so there's opportunity. He doesn't know the stock well, but the chart suggests a buy right now.
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AbbVie Inc. (ABBV-N)
July 9, 2019
It's come off a lot, so there's opportunity. He doesn't know the stock well, but the chart suggests a buy right now.
BUY
BUY
May 3, 2019

Good entry point. Main drug Humira is $20B per year, and yes, its patent will expire in 2021. But they've been reinvesting that cash cow in other drugs. Paying 9x earnings, so it's cheap. Could consolidate around $100. Great dividend, balance sheet. Own it in a basket.

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Good entry point. Main drug Humira is $20B per year, and yes, its patent will expire in 2021. But they've been reinvesting that cash cow in other drugs. Paying 9x earnings, so it's cheap. Could consolidate around $100. Great dividend, balance sheet. Own it in a basket.

DON'T BUY
DON'T BUY
April 22, 2019
A fine company. Its major product is Humira, the biggest drug in the world in terms of sales and it amounts to 65% of ABBV's revenue. ABBV's dividend is sound, but ABBV will have to go through a transition, like merge with another comapny and develop other drugs, to take the pressure off Humira.
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AbbVie Inc. (ABBV-N)
April 22, 2019
A fine company. Its major product is Humira, the biggest drug in the world in terms of sales and it amounts to 65% of ABBV's revenue. ABBV's dividend is sound, but ABBV will have to go through a transition, like merge with another comapny and develop other drugs, to take the pressure off Humira.
PAST TOP PICK
PAST TOP PICK
April 4, 2019
(A Top Pick Apr 12/18, Down 7%) The only big pharma name that has a single digit P/E. Nice dividend yield over 5%. It is under pressure now because their arthritis drug is facing competition from generics and it is 60% of their revenues. The dividend yield acts as a support now. He is holding and monitoring M&A activity.
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AbbVie Inc. (ABBV-N)
April 4, 2019
(A Top Pick Apr 12/18, Down 7%) The only big pharma name that has a single digit P/E. Nice dividend yield over 5%. It is under pressure now because their arthritis drug is facing competition from generics and it is 60% of their revenues. The dividend yield acts as a support now. He is holding and monitoring M&A activity.
HOLD
HOLD
March 21, 2019
They have Humera which makes up 62% of their revenue. This is not up-coming in the business but it represents some patent risk as it comes off patent in 4 years in the US. There will be competition around the world before then but not significant. They have to back stop this with other offerings. It could be through a purchase of a pipeline or something else. As time goes on you are going to get less and less benefit from this drug as an investment.
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AbbVie Inc. (ABBV-N)
March 21, 2019
They have Humera which makes up 62% of their revenue. This is not up-coming in the business but it represents some patent risk as it comes off patent in 4 years in the US. There will be competition around the world before then but not significant. They have to back stop this with other offerings. It could be through a purchase of a pipeline or something else. As time goes on you are going to get less and less benefit from this drug as an investment.
HOLD
HOLD
February 28, 2019
It has been a tough pharma name. It is the only single digit P/E on the large pharma space. There is execution risk. Probably the dividend yield is safe. He would put a stop loss at the beneath the $78 level.
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AbbVie Inc. (ABBV-N)
February 28, 2019
It has been a tough pharma name. It is the only single digit P/E on the large pharma space. There is execution risk. Probably the dividend yield is safe. He would put a stop loss at the beneath the $78 level.
DON'T BUY
DON'T BUY
February 21, 2019
The valuation is low and dividend is high. It cold be a trap. They focus in Humara. There is pressure from competition. He wouldn't be buying here as it carries more risk than it looks like.
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AbbVie Inc. (ABBV-N)
February 21, 2019
The valuation is low and dividend is high. It cold be a trap. They focus in Humara. There is pressure from competition. He wouldn't be buying here as it carries more risk than it looks like.
PAST TOP PICK
PAST TOP PICK
February 4, 2019
(A Top Pick Mar 23/18, Down 16%) He thinks this is a really good sector. The seasonality doesn't come in for a while yet. There is a double bottom, which is positive. There are few sectors that look like they are in a secular bull market like this one.
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AbbVie Inc. (ABBV-N)
February 4, 2019
(A Top Pick Mar 23/18, Down 16%) He thinks this is a really good sector. The seasonality doesn't come in for a while yet. There is a double bottom, which is positive. There are few sectors that look like they are in a secular bull market like this one.
BUY
BUY
November 7, 2018
Just reported earnings last week, beating the street by 6%. It's been sideways, but pays a 4.9% dividend that should grow. Trades at 10x forward earnings at a 11% growth rate. But the market isn't recognizing this now. It's a good healthcare name, and healthcare has been outperforming the S&P in the current late cycle. ABBV has beaten earnings many quarters in a row.
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AbbVie Inc. (ABBV-N)
November 7, 2018
Just reported earnings last week, beating the street by 6%. It's been sideways, but pays a 4.9% dividend that should grow. Trades at 10x forward earnings at a 11% growth rate. But the market isn't recognizing this now. It's a good healthcare name, and healthcare has been outperforming the S&P in the current late cycle. ABBV has beaten earnings many quarters in a row.
HOLD
HOLD
September 12, 2018

Likes it, even though flat this year. Pays a nice dividend of 4.1%, which is expected to grow. Likes the healthcare space. Hold on to it and collect the dividend.

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AbbVie Inc. (ABBV-N)
September 12, 2018

Likes it, even though flat this year. Pays a nice dividend of 4.1%, which is expected to grow. Likes the healthcare space. Hold on to it and collect the dividend.

WATCH
WATCH
August 21, 2018

This is a fine company. Its primary product is Humira, the most successful drug in the history of the pharmaceutical industry. It represents about 60% of AbbVie’s earnings, which means that AbbVie’s portfolio is not well diversified. This is not unusual for pharma companies. The drug will not go off patent for a few years, but the clock is ticking. The question to ask is whether the company has good replacements in the works.

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AbbVie Inc. (ABBV-N)
August 21, 2018

This is a fine company. Its primary product is Humira, the most successful drug in the history of the pharmaceutical industry. It represents about 60% of AbbVie’s earnings, which means that AbbVie’s portfolio is not well diversified. This is not unusual for pharma companies. The drug will not go off patent for a few years, but the clock is ticking. The question to ask is whether the company has good replacements in the works.

BUY
BUY
July 5, 2018

Is the yield sustainable? They are one of the largest biotech companies out there. They have one primary drug called Humera. It is an $18 billion dollar drug. They made a number of acquisitions. He sees the dividend as sustainable. Good valuation.

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AbbVie Inc. (ABBV-N)
July 5, 2018

Is the yield sustainable? They are one of the largest biotech companies out there. They have one primary drug called Humera. It is an $18 billion dollar drug. They made a number of acquisitions. He sees the dividend as sustainable. Good valuation.

BUY
BUY
June 22, 2018

Nice little pharmaceutical name. 23% EPS growth. Trading at a reasonable 12 multiple. At these levels is OK to accumulate.

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AbbVie Inc. (ABBV-N)
June 22, 2018

Nice little pharmaceutical name. 23% EPS growth. Trading at a reasonable 12 multiple. At these levels is OK to accumulate.

DON'T BUY
DON'T BUY
April 24, 2018

A bad acquisition two years ago hit them badly after that new company suffered a negative drug trial. Then, the stock dropped and he sold. There's probably still value in this stock, but he'd rather buy something else.

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AbbVie Inc. (ABBV-N)
April 24, 2018

A bad acquisition two years ago hit them badly after that new company suffered a negative drug trial. Then, the stock dropped and he sold. There's probably still value in this stock, but he'd rather buy something else.

TOP PICK
TOP PICK
April 12, 2018

A spin-off from Abbott Laboratories (ABT-N). Strong exposure to immunology and oncology medicines. Dividend Yield of 4.2%. The stock sold off because they had a setback on a cancer drugs, but it is overdone in his opinion. Great way to own a strong growing pharma company. (Analysts’ price target is $120.27)

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AbbVie Inc. (ABBV-N)
April 12, 2018

A spin-off from Abbott Laboratories (ABT-N). Strong exposure to immunology and oncology medicines. Dividend Yield of 4.2%. The stock sold off because they had a setback on a cancer drugs, but it is overdone in his opinion. Great way to own a strong growing pharma company. (Analysts’ price target is $120.27)

TOP PICK
TOP PICK
March 23, 2018

He holds this in a pure technical system portfolio. It was down 13% yesterday and they decided to step in. A lung cancer drug recently announced disappointing results. They see health care in a secular bull market. A hot pick today.

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AbbVie Inc. (ABBV-N)
March 23, 2018

He holds this in a pure technical system portfolio. It was down 13% yesterday and they decided to step in. A lung cancer drug recently announced disappointing results. They see health care in a secular bull market. A hot pick today.

STRONG BUY
STRONG BUY
March 21, 2018

Really likes this. They put up a monster quarter earlier this year as well as surprise drug trials for dermatitis that came in strong. They've won some patents. It's a $20-billion cash cow that they're reinvesting, some in partnerships with companies like J&J. Everything is working for it.

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AbbVie Inc. (ABBV-N)
March 21, 2018

Really likes this. They put up a monster quarter earlier this year as well as surprise drug trials for dermatitis that came in strong. They've won some patents. It's a $20-billion cash cow that they're reinvesting, some in partnerships with companies like J&J. Everything is working for it.

COMMENT
COMMENT
September 19, 2017

(Market Call Minute.) A company that was spun off from Abbott Labs (ABT-N) 2 or 3 years ago. A great company, but 66% of their revenue comes from 1 drug, Humira, the best selling drug in the world.

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AbbVie Inc. (ABBV-N)
September 19, 2017

(Market Call Minute.) A company that was spun off from Abbott Labs (ABT-N) 2 or 3 years ago. A great company, but 66% of their revenue comes from 1 drug, Humira, the best selling drug in the world.

BUY
BUY
September 14, 2017

You absolutely have to hold on to it if you have a 2 year outlook. Humera is the largest selling drug in the world. They are forever in patent disputes. They have taken this cash cow and used the proceeds to reinvest in their pipeline. They have a great balance sheet and a great yield. We are seeing great results from their trials. It should have double digit growth and should be at 15 times. It should consolidate higher than where it is.

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AbbVie Inc. (ABBV-N)
September 14, 2017

You absolutely have to hold on to it if you have a 2 year outlook. Humera is the largest selling drug in the world. They are forever in patent disputes. They have taken this cash cow and used the proceeds to reinvest in their pipeline. They have a great balance sheet and a great yield. We are seeing great results from their trials. It should have double digit growth and should be at 15 times. It should consolidate higher than where it is.

PAST TOP PICK
PAST TOP PICK
August 24, 2017

(Top Pick Jun 23/16, Up 23.30%) He still likes it and it is one of his favourite healthcare names. It has a 12 times PE and 8% long time growth rate. It trades at a discount to its peer group. Humeria is 60% of their revenues so we have to watch this concentration risk.

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AbbVie Inc. (ABBV-N)
August 24, 2017

(Top Pick Jun 23/16, Up 23.30%) He still likes it and it is one of his favourite healthcare names. It has a 12 times PE and 8% long time growth rate. It trades at a discount to its peer group. Humeria is 60% of their revenues so we have to watch this concentration risk.

DON'T BUY
DON'T BUY
June 21, 2017

(Market Call Minute.) The spinoff from Abbott Labs (ABT-N). What makes him hesitate about this is that it is more of a 1 product company with their Humira drug. It represents about 65% of their total revenue, so that presents risks.

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AbbVie Inc. (ABBV-N)
June 21, 2017

(Market Call Minute.) The spinoff from Abbott Labs (ABT-N). What makes him hesitate about this is that it is more of a 1 product company with their Humira drug. It represents about 65% of their total revenue, so that presents risks.