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Sunday, 01/28/2001
| ABT - Abbott Laboratories |
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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
(888)-332-2268
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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