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The Many Reasons to Still Own Abbott Labs

The physician, Dr. Samin Sharma, is director of Clinical and Interventional Cardiology, dean of International Clinical Affiliations, and president of the Mount Sinai Heart Network, at Mount Sinai Medical Center in New York.

Dr. Sharma explained further, "For these patients, physicians have a new technology to reach the blockage and restore blood flow with ease and confidence." For ABT that's the kind of endorsement that money just can't buy and should help make the sales of the new coronary stent system a significant new addition to the company's cash flow.

Abbott will report quarterly earnings and no doubt comment on its dividend on Jan. 21.

Let me close with a five-year chart that speaks volumes about ABT's success both as a company and as a diversified provider of many far-reaching health-care and medical products. Its free cash flow yield and its remarkable increase in quarterly income from continuing operations is nothing less than impressive. ABT Free Cash Flow Yield Chart ABT Free Cash Flow Yield data by YCharts

Yours truly will continue to accumulate shares of ABT on pullbacks. The 200-day moving average price per share is around 7% below Thursday's closing price of $33.27. Don't chase this stock, and if you own it I'd recommend you use a stealth trailing stop loss system that will alert you when the price of ABT shares reaches your chosen buy-limit price.

At the time of publication the author had a position in ABT.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Jim Cramer and Stephanie Link actively manage a real money portfolio for his charitable trust- enjoy advance notice of every trade, full access to the portfolio, and deep coverage of the latest economic events and market movements.
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