What Did You Buy Today?

[fenders53]

(04-22-2020, 11:36 AM)EricL Wrote: I have zero problems buying a stock at new all-time highs, as often-times that means a breakout where price can go much higher.

I do shy away from buying at all-time highs when a stock is trading at all-time high valuations, and is trading there despite EPS estimates for 2020 being cut.

According to FAST Graphs, ABT is trading at a blended PE of ~30. This is the first time its traded at that multiple since January of 2002.

ABT is priced for perfection, and is getting a huge premium due to the publicity of its COVID-19 diagnostic tests.

Just keep in mind, this is a $165B company, and there are also other parts to the business that are struggling due to the pandemic.

I haven't trimmed my position yet, but I'm strongly considering taking some off the table to fill out my BMY position.

This is very much like MMM spiking because they are selling a bazillion face masks for a buck each.  That's great but it's such a small part of their 10,000 SKU line up.