Cramer Hates AbbVie

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Anonymous

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After the spin-off Cramer thinks Abbott Labs should have more growth potential than AbbVie, Abbott's old pharma division.

"Even though AbbVie sports a juicy 4.7% yield, I think the stock should not be owned here for the simple reason that it has nothing big in the pipeline that would fuel much growth down the road," Cramer said.

In fact, Cramer believes the whole point of this spin off was to get rid of the no growth pharma business that was holding the rest of the company back.

"Stick with Abbott Labs," Cramer concluded.


http://www.cnbc.com/id/100332727?__source=yahoo|headline|quote|text|&par=yahoo
 






Anonymous said:
If what Cramer is saying was true then why hasn't Abbott dumped control of managing Synthroid sales outside the US?
Click to expand...

They are in a process selling the remaining pharma crap outside the US, the issue is, that despite emerging markets the sales are falling with 2 digit percentages in developed markets like in the EU - and probably initially the AbbVie number should not look so bad....

http://www.opednews.com/articles/Synthroid-Sucks-The-Rally-by-Janie-Bowthorpe-090130-594.html
 








Well, it is early, but so far, AbbVie seems to be ahead of the game. We will have to wait a year or two in order to find out "who wins".

But in either case, Cramer is a pathetic imitation of Louis Rukeyser who led WSW for what 30+ years or so? Just sick with the honking horns and bombs... stupid.
 


Anonymous said:
Well, it is early, but so far, AbbVie seems to be ahead of the game. We will have to wait a year or two in order to find out "who wins".

But in either case, Cramer is a pathetic imitation of Louis Rukeyser who led WSW for what 30+ years or so? Just sick with the honking horns and bombs... stupid.
Click to expand...

Oh, I thought you were talking about Jerry's neighbor on 'Seinfeld'.
 


I am still betting on both horses. Abbvie was suppose to be left behind at the gate, but has thus far smoked Abt in the stock market recently.
That said, I am reminded that BMY spun off Mead Johnson Nutritionals a few years back and Mead Stock is now around $66 per share. Mead Johnson is only in the North American markets whereas Abbott Nutritionals is expanding in emerging markets. Compare this to ABT that has not only Nutritionals, but also Vascular, Diagnostics, and Generic Drugs, and is priced in the low 30 s and the potential is obvious. It is also possible that Abbott Nutritionals could be spun off by itself one day. This could be the gift that keeps on giving.

Realize the Humira and pipeline concerns for Abbv. While oral RA application has advantages over injectables such as Humira, Humira has more approved indications than RA ie Chrones, Phsoriasis and more. Additionally it is very difficult to manufacture which generic manufacturers would have to overcome post patent expiration in 2016. That said pipeline and production continuity is a concern. Getting a 4.7 per cent dividend off Abbv while I wait to see how things develop is not a bad deal.

So for now I am keeping both, as ironically when one goes down in stock price the other goes up.

Keep the faith.
 



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