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Is Abbott providing a chance of doubling your money?

Recently Abbott realized a spinoff when the company split into two entities – Abbott (ABT) and AbVie (ABBV). If you happened having some shares of ABT, right now you should have the exact amount of shares of ABBV in your account. Both stocks are now prices roughly at the half of the previous ABT price. The cost basis of ABT should now be $31.34 a share and ABBV should be $34.16 a share.

Many times in history a stock price of good companies soon after their stock split run back up to the previous levels and doubled money to their investors. Will ABT or ABBV follow that path? I do not know, but I wish this would be the case.

ABT has a great history, great management, and recently received an FDA approval on another drug XIENCE. It also cooperates with BG Medicine (BGMD) which recently received EU approval on another medicine Galetin-3 blood test. Will these new pipelines help boosting ABT? Time will show.

If you think it is not possible to double the money or have ABT running back up to its 60’s just look at the stock market history.Just look at companies such as Microsoft which split three times in three years, Dell Computer (DELL) split five times in 2-1/2 years, Krispy Kreme Doughnuts which split twice in three months or Taser International which split 3:1 in February 2004 and then 2:1 two months later another 2:1 split.

I am not saying that it will happen, but it may happen. In that case we will see nice juicy profits. ABT looks like a great company having such potential.





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