Healthcare play

Growth

Buy - Price 48.58 on Sept. 29
by Hilliard Lyons

Abbott has agreed to acquire the pharmaceutical unit of Solvay Group (ticker: SOLB.Belgium) for $6.6 billion in cash.…[The purchase] would add more than $3 billion in annual revenue, increasing ABT's pharmaceutical sales base by 18%. About 75% of Solvay's sales are outside U.S., with exposure to faster-growing emerging markets. Overlapping therapeutic areas include cardiovascular-disease, neuroscience, and gastrointestinal products.… Management believes the deal could add 10 cents to 2010 earnings per share, and more than 20 cents by '12.…Our 55 target uses a price/earnings multiple closer to the Standard & Poor's 500, applied to our '10 EPS estimate of $4.20. Market cap: $75 billion.

Undervalued; great company

"Abbott Laboratories (ABT) signed a definitive agreement Monday to acquire the pharmaceuticals business of Belgium's Solvay for $6.6 billion in cash in a bid to expand its presence in Eastern Europe and Asia and emerging markets."

Read more here.

Steady Growth

This drug company stands to increase investor awareness at upcoming medical conferences.

grossly undervalued with great yield

In the latter theory the big durable good numbers and existing-home numbers are "in" the stock market. I say that because some of my hardest-hit names are directly linked to a stronger economy -- 3M (MMM), Caterpillar (CAT), Deere (DE), Fluor (FLR) and General Electric (GE) -- while the recession stocks are rocking: Procter & Gamble (PG), Celgene (CELG), General Mills (GIS), Pepsi (PEP), Coca-Cola (KO) and Abbott Laboratories (ABT). Worse, Dollar Tree (DLTR) and Family Dollar (FDO) are on the move.

UNDER VALUED. WELL RUN COMPANY. WAS A CUSTOMER OF MINE.

Lacks momentum but has good dividend and high yield

52 week high 1-30 - 07