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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: lostmymoney who wrote (16813)	9/30/1999 9:21:00 AM
From: scouser	Read Replies (1) \| Respond to of 29382

Bo ABT NYSE , don't look too good for them , I think some one knew this a few days ago according to the chart. RESEARCH ALERT-DB Alex. Brown cuts Abbott WEDNESDAY, SEPTEMBER 29, 1999 9:33 AM - Reuters (NYSE:ABT) CHICAGO, Sept 29 (Reuters) - Deutsche Banc Alex. Brown analyst Jonathan Osgood said Wednesday he reduced his rating on Abbott Laboratories Inc. to buy from strong buy after the U.S. Food and Drug Administration notified the healthcare products company a key plant is not in compliance with regulations. - Osgood said the downgrade is a signal to investors to be cautious. Although Abbott remains a premier company in the industry, it is in the midst of a transition and the FDA's move adds more uncertainty. MORE - Osgood estimated the plant, which makes diagnostic chemicals used in Abbott's hugely successful AxSYM and IMx immunoassay analyzers, produces anywhere from $500 million to more than $1 billion in sales annually. - Abbott said in a statement that it is in talks with the FDA and believes it is in substantial compliance with the regulations. If the discussions are not successful, the government could file to have the manufacturing and sale of a number of products stopped. - Osgood said that if the FDA were to shut down the plant, it could cost Abbott between 4 cents and 8 cents in quarterly earnings per share, or 14 to 30 cents annually. - Osgood added, however, that any shutdown would likely be temporary, and that it is possible that another Abbott plant could produce some of the reagents. - Trading in Abbott stock was delayed on Wednesday because of an order imbalance, but shares were indicated lower. Abbott closed on Tuesday at 40-1/16.