Monday, January 09, 2006

Abbott Labs/Corning

We're all hugs and smiles today.

The Dow closed above 11,000 and we made a lot of cash on Abbott Labs (ABT) after it was upgraded by JP Morgan. We hold a decent position in the stock.

Remember how a couple of weeks we told you to watch it?

We were serious.

We'll refresh your memory:

"...the best biologic drugs on the market approved for psoriasis include Genentech's Raptiva and Abbott Lab's Humira. These drugs boast great track records; the companies behind them are just as dependable.

Abbott (ABT) has a solid business platform built on pharmaceuticals, diagnostics, and infant formula.We think of Abbott as a classic growth story. Abbott spits out plenty of cash, pays a 3% dividend, and trades for less than its industry multiple.

....We believe that these two names are some of the best in the industry and we hope you'll join us in tracking them in 2006..."

Furthermore, ABT saw some upside after it was disclosed that it might be buying buy Guidant's vascular intervention and endovascular businesses for more than $4 billion.

In other non related news -- LCD supplier Corning (GLW) had a nice pop, as well. You should recall that just this past Saturday, we touted the stock nine ways to Sunday:
"...we are reiterating our $30 dollar price target on shares with a twelve month outlook. We believe Corning is a stock analysts love (13 analysts and not one sell), but investors are sleeping on. Corning is the company that brought you Pyrex and now wants to redefine your living room experience. The long term catalyst is the mushrooming flat panel/LCD business Corning is imbricated axing off debt, improving gross margins, and reinventing it's revenue driver -- Corning has emerged from the telecom coma stronger than ever. .."
Another slam dunk for us -- the stock was up over 6% today on no news.

Could it be that is beginning to move the markets?

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