I really do not feel that HSP came to me free as you say. The overall value of the once combined company seems to me to be the issue here. Better minds than mine obviously saw it differently and so it goes. I just have never "personally" seen how it helped the ABT company.
My time line is shorter than most, I am working to insure that my wife is well covered when my ticket gets punched. In no way am I advocating overly risky positions in anything!
I am sure that HSP will slog along and possibly be able to get some much needed top line sales from generic/Iv/ infusion pumps etc.
I still think that some others show some better& bigger prospects.
my wife and i are both ex-wager's. she had 10 years, me 7. wag/cvs will be the two main players in the rx game over the next 10-15 years. between them i think they fill somewhere around 40-50% of rx's filled in US (non-mail order). however margins are shrinking, costs exploding, and mail order gaining steam. rx's account for 70% of wags sales but only 20% of profits. 50% of profits are from film processing and you know where that biz is going (digital). at one time between us my wife and i owned close to 4500 shares, we now have less than 100. we bought as low as $29, as high as $48 (options that we were given but had to convert to shares). sold most betwen $36-42. over-all did ok with wag. the way i would work it now is trade it. buy on weakness ($31-35) sell on strength ($41-44). too dangerous to hold long term. just my FOOLISH opinion. btw we are approached monthly by either wag/cvs or albertsons to sell out. not yet maybe in 3-5 years. <br><br>thanks
Yee gods what a ride! I have been a key stroke away from dropping HSP and now it looks like LIB's advice is more than correct.
So there....to any of our ABT board readers that think we are all nuts!
This info saved me some seriuos bacon,
Do not keep HSP because I said so. I think it's in the early stages of a multi year up trend, but there will be times when it trades below today's level. I could also be wrong in my bullishness, but don't think so. Remember when the laggard used to split every three and 1/2 years? It would sit at the same level for months on end and sometimes go down. Now the laggard does that for decades on end, but that's another story. I think HSP will rise the way the laggard used to, with pauses and declines along the way. They have many tailwinds. Their sales base is relatively low at $2.6 billion. It's not that hard to grow from that level. They've got lots of patent expirations upcoming that they can exploit, excellent technology on their pumps and a large international opportunity. It looks like the path of least resistance is up.
HSP has always jumped on earnings announcement day. People have figured that out and are bidding it up in advance. The earnings pop might occur, but it will be smaller. I'm predicting $49 either by or on earnings day, then the traders who are bidding it up in advance will unload at that level and drive it down and the amateurs will say, "How can HSP be going down? They reported great earnings." It's the way the game is played. It's called "Sell on the news" and it looks like HSP might be ripe for some of that next week when they announce. I would like to be wrong about the decline after the pop. It also depends by how much they beat earnings estimates.
Remember, this sagely advice is from the guy who loved NFI some time back. FWIW. Greed is good.