Much like Johnson & Johnson's
But, Johnson & Johnson and Abbott can afford to wait for discretionary spending on boob jobs and LASIK to rebound in the years ahead. In the mean time, Abbott also obtains Advance Medical Optics' cataract surgery and contact lens care products, which should be more recession-proof. Even after taking on Advanced Medical Optics' $1.5 billion in debt, Abbott still thinks the acquisition will be neutral to this year's earnings and start contributing to earnings next year.
With Advanced Medical Optics out of the way, the big question is who's next? It seems to me that the cosmetic laser companies are ripe for the picking. Syneron Medical
Buying shares with the hope of the company getting acquired is rarely a good move, but investors that can follow the same long-term thinking that Abbott and J&J do should be rewarded as they buy at these bargain-basement prices. Eventually.