Exiting Lab Corp; Raising Cash
Laboratory Corporation of America Holdings is a Top-25 Purple Chip operating as an independent clinical laboratory company worldwide. It offers a range of clinical laboratory tests, including blood chemistry analyses, urinalyses, blood cell counts, thyroid tests, Pap tests, HIV tests, HCV tests, microbiology cultures and procedures, and alcohol and other substance-abuse tests. We highlighted a low valuation in Lab Corp on October 23rd to our Premium newsletter subscribers at $USD 85.20 and again online November 2nd, 2012.
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We are concerned that the shares may stay in a lower valuation range due to flattening forward earnings. The stock pays no dividend and growth stocks are more susceptible to correction than their dividend paying cousins, therefore we are reducing our high valuation target to $95.00 and raising cash.
In light of the recent run up in the stock price we are taking profits and exit at $95.30. We will look to recycle these funds into other opportunities at lower valuations.
EXIT LAB CORP ABOVE $USD 95 (LH-US, $USD 95.30)
