I'm new to ABT and this board and hope you all might answer a question. I bought shares recently at 46.97. The M* dividend newsletter (Josh Peters) lists this as their top pick for 2011 and suggests a safe entry anywhere equal to/under 58. I'd like to buy more. Is it the trend in this stock that it sells on a non-disappointing earnings report? If so, is it all in that day or does it trend down over several days after? Many thanks. (Note: I invest long for dividend income; I'm not a frequent trader)
- the clam
I bousght 100 at 46.83. see that it looks like it dumped down to 46.75 at end. My goal is to get 200 so I figured I would break order and see which direction it heads in next few days.Thank goodness for discount brokers. I really don't understand the punishment it took today.
Im not rationalizing anything. This is ridiculously oversold, RSI is about 20. If you think its going lower maybe you should short it. The forward P/E is getting close to single digits. The whole sector has been out of favor since HC reform, but ABT is still a buy IMO. Wait until the bernanke bubble pops, the whole market will be fleeing into pharma with its relative stable earnings and juicy dividends.
This is a pretty good entry point. It could trade down a bit but not much after that report; I would hold back some cash just in case in goes lower. ABT's P/E and PEG are pretty low for a big pharma, and IMO the revenue prospects of its portfolio and its pipeline are very attractive. ABT was one of the first pharmas to go into biologics in a big way and it still enjoys a significant advantage in that area. I have cycled in and out of ABT very successfully the last couple of years, selling ex dividend and then looking for a good reentry point. There really isn't much to dislike here, but do you own research.
I agree with your analysis on the entry point as being fair at these levels but it is possible to be lower on Feb. 3 since it goes ez-dividend on the 2nd. Some folks may be holding to get the dividend and then dump it. Thoughts?
Frankly, considering the fact that ABT's guidance on the low end is a bit n=more bearish than "Street" consensus, the stock is holding up remarkably well. This could be one of those extraordinary instances where the stock is simply washed out.
ABT has always, and will always, trade in a reliable price wave: buy in the mid/high 40s...sell in the low 50s. Once the dividend is declared in mid-February, I suspect the stock will begin to rise on the bullish news, as post-declaration, ABT will likely be yielding 4% ( assuming a flat share price until said declaration date ).