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Sunday, 01/28/2001

ABT - Abbott Laboratories

Company Description

For more than a century, Abbot Laboratories (NYSE:ABT) has been working to advance health care for people around the world. Founded by a young Chicago physician, Dr. Wallace Calvin Abbott, in 1888, Abbott Laboratories has evolved into a diversified health care company that discovers, develops, manufactures and markets innovative products and services that span the continuum of care - from prevention and diagnosis to treatment and cure. Headquartered in north suburban Chicago, Abbott helps people around the world in more than 130 countries.

A solid pharmaceutical company, led by a superior management team, belongs in every long-term investor's portfolio. And if you're searching for a long-term performer, look no further than the century old Abbott Labs. The company has a sound history of earnings growth along with paying investors a stable and impressive dividend. And Abbott Labs' management team is the best of breed.

(source: Abbott Labs)

Reasons to Invest

The reasons for investing in a drug company, over the long-term, are twofold. First, demand for health care products, including drugs, is relatively stable and immune to the business cycle. Whether the economy is rising or falling, people need their medication to treat illness and disease. It's that simple. Second, there will be a shift in the United States' demographics over the next decade or two, which will greatly benefit the major pharmaceutical companies. The demographic we are referring to is, of course, the baby-boomer population of the United States. This group of people are entering into their senior years and will depend upon healthcare to ensure a long and enjoyable life, which they all have definitely earned! There is a third, and less significant, reason the drug stocks may present an attractive long-term investment currently. And that is the new political landscape in America. Many industry analysts feel the new executive branch of government may be a pharmaceutical-friendly bunch. However, for our intents and purposes, we'll remove any political variables and focus on the bigger picture.

Along with solid financial performance and management, we are attracted to Abbott Labs for its breadth of products. The company has a wide range of product offerings which treat conditions such as cancer, diabetes, kidney disease and epilepsy, among many others. And the company has a deep product pipeline which will continue to deliver products that improve the human way of life. The benefits of investing with Abbott Labs are twofold. The first, and obvious, benefit is the history of solid financial performance the company has demonstrated and the potential for financial gain. And the second benefit of Abbott Labs is the fact you're investing in the improvement of the quality of life.

Because of the aforementioned attributes, shares of Abbott Labs have returned in excess of 600% to long-term investors over the last decade. And, of course, past performance is not a guarantee of future results. However, given its broad product offering, deep research and development resources, and sound management, we feel Abbott Labs would make a nice addition to a diversified portfolio.

DRIP Information:

Shares to Qualify = 1		Accept Foreign Accounts:Yes
Autoreinvestment  = no		Temper Enrollment Serv:Yes

Min/Max investment = $10 - $5,000/quarter
Reinvestment Fees: 
Dividend: 0   	   Cash:  0       Auto ReInvest: n/a

Transfer Agent:

BankBoston, N.A.
c/o EquiServe
P.O. Box 8038
Boston, MA 02266-8038
Abbott Shareholder Services: (847)-937-3923

Fundamentals            Company Profile

Industry Group: Pharmaceuticals   52-week high=$56.25
Annual Dividend Per Share=$0.76   52-week low =$29.38
Last earnings 12/00    est=0.48   actual=0.48
Next earnings 03-15    est=0.49   versus=0.44
                                  P/E = 25
               Analysts Ratings
                 Strong Buy = 10
               Moderate Buy =  6
                       Hold =  7
              Moderate Sell =  0
                Strong Sell =  0

Six Month Chart of ABT


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