-
Abbott Laboratories (ABT $87.17)
-
Merck & Company Inc. (MRK $113.15)
-
Thomson Reuters Corporation (TRI $129.43)
Q: The symbol for my Thomson Reuters Corp has changed to 66543D today. My online broker told me that this is because of a merger with another company, could you elaborate on this? I have been holding ABT for more than 5 years now and I am in negative territory with this stock today. Would you buy more, hold or simply sell for something better in the health care sector? Thank you
5i Research Answer:
TRI has not changed its symbol, and has not merged. It has though gone ex dividend on a special $1.43 per share return of capital and consolidated its shares 0.9846 to 1, as part of this special payment.
ABT is suffering both from the sector malaise and missed earnings and guidance. The stock is relatively cheap at 15x earnings, but not that cheap relative to some peers. Debt is quite high at 3x earnings. We would not miss it much if sold, MRK could be a sector replacement.