Betting on Youth

For as long as I've written for Real Money, I've turned repeatedly to the topic of recent initial public offerings. When I was a growth-stock trading coach, plenty of small-cap IPOs showed potential as short-to-medium-term buys. These days, as an advisor at Portfolio, we run an Equity Overlay portfolio comprised mainly of large-caps with a smattering of mid-caps. They are all profitable, and we analyze factors such as dividend growth, sector strength and technical support when making investment decisions.

Last week, as I was randomly (and, I admit, somewhat absent-mindedly) perusing data on investment returns on our holdings, the gains in AbbVie (ABBV) jumped out at me. Not only were the returns notable, but so was the youthfulness of the company. AbbVie is the biopharmaceutical wing of Abbott Laboratories (ABT), formed when the companies split into separate entities in January. It consists of Abbott's former pharmaceutical business. Its flagship product is the anti-inflammatory drug Humira. It is also having success with AndroGel, a treatment for men with low testosterone....334 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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