Great write-up in Barron's February 14: "Abbott's:Prescription for Success." Here's an excerpt:
For Abbott, the combination of strong products and solid patent protection adds up to potentially stellar profits. Morgan Stanley analyst David R. Lewis believes Abbott will beat consensus earnings estimates in 2010 and 2011 with per-share net of $4.23 and $4.72, respectively. When he adds up the value of Abbott's various businesses, he arrives at $102.4 billion, or about $66.44 a share, which is in line with his 12-month target price of $67.
Hint: Wall Street analyst stock price projections are no better than yours, mine or those of a monkey with a dart board. If the past few years have not convinced investors of that, then nothing will. Good luck.
Since I'm not a monkey and my aim isn't that hot, I'm not buying a dart board. There must be some basis, other than blind luck, that accounts for some long-term investors making a lot of money legitimately from their portfolios. My own due diligence, imperfect as it is, indicates that ABT should be at around $61.00 by the end of next year--if the stock market hasn't tanked completely.
Barron's just projects past earnings like children. If only it were so simple. I agree with you - overpriced companies will be sold to pick up more of the ones that got hammered. Its called portfolio rebalancing and it happens at every single institution.
You never cease to amaze me. So the Dow retraces 20% and so does ABT...what a variance..man you are really going out on a limb. And this is fact as you stated...hmmm...just like the fact you continue to bash a stock that you own? I thought scientists were supposed to be intelligent and good with numbers? I'll take my real returns while you live in your imaginary world where your investment rhetoric carries some weight. Stick to science...hopefully you do some good there and develop something that benefits humanity.