I bought this at $54 two years ago based on very positive dd. I was happy with the quick initial appreciation, but the stock suddenly tanked based on fears of the impact of healthcare reform, humira competition, etc., and has never recovered. I'm a long term investor, but I'm wondering how long I'll have to hold this until I see $54 again. Any thoughts? Serious replies only, please.
I have never owned Abbott but bought today. I am 69. If you look at the last ten years, it has been a steady chugger but not an explosive growth stock. Over the past ten years, sales have grown at 8.9% and earnings at 7.8%. I was able to retrieve the dividend payout and they have increased their dividend every year since 1993 and I would not be surprised if it goes back even farther. There is a lot of uncertainty in the air about health care and you have to always remember that stocks go up and stocks go down. I viewed this as a good buying opportunity and as someone else as posted: while you wait there is a 3.6% dividend. Pretax profit margins are excellent and return on equity is solid and has been consistently in the high 20% range.
"A warning though: do not expect virtually ANY discussion about ABT as we long ago came to the sad conclusion that basically posits that ABT is a laggard and there isn't much to say about it."
Why post at all if one should not have a discussion? Perhaps nothing rational to discuss because you only want to vent irrationality. From your constant rants you appear a fustrated failure only seeing gloom and doom.
I see Abbott as a winning company with an excellent history born from a culture of success amidst a post-world war II Chicago environment.
I agree that sometimes a "sad conclusion" applies.
A view of life born from personal fustration and anger can not accurately match a mature, objective view of business realities not saddled by emotional baggage.
ABT didn't tank because of health care reform-just look at MRK rising today, JNJ eating ABT's lunch, etc.
ABT has incurred "one-time charges for almost a decade. It has a CEO who pushed away, got rid of/fired the best talent, retaining only the court jesters who repeat regal that megalomaniacal individual with never-ending terms of adulation.
How do you expect a company like that to thrive?
At the same time, for reasons that can only be attributed to simple stupidity, this stock has been incessantly touted as the best of pharmas by people like Cremer, by Barron's and other deceitful individuals and organizations... they know what they are doing, believe me, they do.
This MB, a Greek Chorus of adulatory excess is the audience that those individuals and organizations target-a herd of sheep!
I am glad to finally see some substance in your words. That's ot to say you don't have substance, I just hadn't read any as I am new on this board. I would like to know, are you still an ABT employee, retired, or one of the unfortunates that were let go. Certainly there has been quite a few let go, and not much of the layoffs make the press.