Abbott Laboratories Com Stk NPV (NYSE:ABT)

CAPS Rating: 5 out of 5

Principal business is the discovery, development, manufacture and sale of a broad and diversified line of health care products. Company has four segments: Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Vascular Products.

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Player Avatar toaoyoda (24.89) Submitted: 2/10/2012 2:47:45 PM : Outperform Start Price: $54.60 ABT Score: +15.55

ABT has been a stellar performer for decades but the upcoming splitup will enhance shareholder value even more. The pharma business will be spun off to showcase the greater PE ratio appropriate to a purer play. Meanwhile, ABT's core businesses of diagnostic, nutrition and medical devices will receive the focus of both management (Miles White will remain with the core ) and investors. ABT is not often recognized as what used to be called a "Japanese manufacturing company" with continual improvements in productivity and quality built into its managerial incentive system. The company has been hit by mfg problems at individual plants in the past but these are one-off problems and not reflective of the overall mfg prowess of this company.

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