Abbott keeps getting mentioned as a partner for Bayer. Any thoughts? An outright purchase looks out of the question as it is estimated that Bayer's pharmaceutical business would go for $10.2 billion. Abbott probably still owes $6 billion from the Knoll deal. Wonder what is entailed in a partnership?
I can't believe Abbott would make a $350M investment in a new plant just for D2E7 if they weren't dam sure of approval. As far as the FDA, now that they have someone finally in control it will make a difference. The fine they leveled on PFE was just peanuts. They have not been consistent when you consider the huge fine on Tap which Abbott owns 50% of.
Looking for 2003 to be a good year for Abbott!
The economy is bouncing back. 4% growth 3rd quarter. Junk bonds going up, yield curve steepening, copper prices up. All indicating economic recovery. Don't get caught up in the drivel which still whines about lousy growth. If you wait for everybody to recognize the trend, it's probably too late. You might be able to make the case that the market has anticipated growth. After all, it's up from 7300 to 8800 in 7 weeks and there's probably not much left for a while, except with OMX. But I am feeling optimistic.
It is also heartening to see countries that were formerly part of the Soviet Union joining NATO and vowing to fight for freedom. In actuality, they don't bring anything to the table militarily, but it is progress for the world to see formerly oppressed people free and joining a coalition with the support and protection of free countries as its main goal.
Let's expand the freedom. It is also self serving because free countries have better economies and trade with America, bringing us increased prosperity.
Sorry about the soap box today, but vacations bring it out. This is a great week to use vacation. You get 9 days off in a row, including the weekends and only have to use 3 vacation days. I'm sure they all miss me.
Hope Abbott is not allowing many people to take vacation. Those people need to be working harder. This stock price is unacceptable.
I went to Africa to view the game in Botswana and visit Victoria Falls.
As for the Nigerians...
"What we are saying is that the Holy Koran has clearly stated that whoever insults the Prophet of Islam, Mohammad, should be killed," Zamfara State Commissioner for Information Umar Dangaladima Magaji told Reuters.
Asked to clarify the government's pronouncement, Magaji said the state had "passed a fatwa".
In direct contradiction with the values of the Libertarian Party, I am becoming an interventionist. We have been blessed in this country with resources as well as with a political system that allows for growth of the individual and society. Liberalism has done considerable damage and held back what we could be, but we're still the best there is. I think after Bush gets through with the middle east, he needs to start changing the dictatorial regimes in Africa as well. Some of these countries are hundreds of years away from becoming modernized and prosperous, but it needs to start somewhere. I don't believe that our creator would object to us sharing our bounty with the rest of the world, even if it's done by force. Part of our bounty is freedom and an understanding of what it allows societies to accomplish. People should be free from tyranny and we're the only country that can make it happen. Getting rid of the dictators won't be that hard. Building the nations will. I'm feeling as though we have a moral imperative to do it. I will not pretend to know how to do this. But we need to look at it and do one country at a time. After we do a couple countries, just the threat will get rid of some of the dictators.
Enjoying Woodward's book. Bush is quite concerned with the morality of allowing dictators to oppress and starve people. I am falling more in love with Condoleeza Rice with each page that I read. She's brilliant. I'm glad interracial fantasies are no longer forbidden.
Lousy market today, but it's been a non stop run since 7300 and it's probably natural for traders to want to bank some profits to enjoy over the holiday. Besides, most of them are probably married and know that their wives will be spending them in to oblivion on Friday, Saturday and Sunday this week.
Persh- Why go to the Dark Continent with highest murder rates in the world 45 per 100,000 compared to world rate of 4? Hotel might be nice but armed guards to travel? Have you ever been to Australia....now that's a place worth the long flight [business class only]? Eagles looked tough but now no QB, Skins over Cowboys if Wuerfel is for real,nice clean-cut kid Father USAF Chaplain. Still holding cash don't think economy ready to bounce back.
I do have an opinion about REITS, particularly individual REITS; things do go wrong and you can lose money quick. I would buy CGM, Cohen and Steers fund. Or it least more than one REIT. Any return of 15% is suspect. If it's too good to be true...etc.
I was in Jo-Burg, picked up at the airport by a driver with pistol by his side. Told at the hotel (the Westcliff, great hotel BTW) not to go out.
Africa close to anarchy, look at the Nigerian crisis. I see the reporter in Nigeria sentenced to death.
Kiki- I have watched NLY for past year no question the 15% yield is impressive but I was concerned with NYC REIT that another terrorism attack could make insurance rates move sky high. Persh-You have an opinion? As for WR that's a crap shoot too risky. Read where 10 year old boy in J'Berg was swallowed by a 10 ft Python who slittered down the river...no thanks don't want to go to Africa or SS Chicago too dangerous!
JMHO, Abbott doesn't need to get envolved with Bayer. There plate is full already. Need to take care of what they have and the markets will take care of us longs!
Need some good news from management. Stock is still one of the most undervalued in the pharma sector. Just look at valuations on the other majors after taking in affects of stock splits!
Good luck longs!
Bayer's drug unit at 2x sales would be cheap!
unless of course it's all coming off patent!then why would anybody want it except for Teva, Barr or Ivax.
Does anyone have any knowledge of Bayers product portfolio--
Anyway, even generic drug manufacturers sell for more than 2x sales!
I fear that BMY or J & J will probably buy it!
Where do you get the notion that it is undervalued! at 25 x last years earnings and 21 X 2002 earnings-- Abbott is overvalued if anything-
Pfizer trades at less that 19 X 2002 earnings, Merck trades at 17X 2002 earnings, etc,
Abbott has one of the highest PE multiples in the pharma trades and it is not a pure pharma company- many of its products are commodities, in Diagnostics, in Ross and in Hospital products--not alot of growth coming from there!
Abbott is overpriced by about 8 to 10.00 per share at this time. If you use the average PE of 18--Abbott's share price should be about $36-37.00 -
EPS in 2003 will be modestly higher--not growing by leaps and bounds!
So please help me understand why you think it is undervalued? because I'm trading on the planet Earth--and not some exchanges in the far off galaxie--or another solar system!