Seized the day today and took heavy losses.

$CVS (+0,21%) sold completely and from the remaining money

position $CAT (+0%) and rebuilt the positions $ABBV (-0,11%) , $VZ (+0,28%) and $ETN (+0,23%) increased.

I expect the latter in particular to deliver strong share price and earnings growth in data centers, automation, drive and aviation technology. Everything that has to do with electrification. 😅

Last major acquisition this year

$LIN (+0,2%)
$ECL (+0,13%)
$ABBV (-0,11%)

From now on only 2 standing orders

On the one hand $VWCE (+0%) and $ETN (+0,23%)

The loss at $ENPH (-0,17%) hurts, but better an end with horror than horror without end!

The solar industry will have a tough time for a while yet, especially with the new US energy policy. I have therefore now reduced my positions in $AMZN (+0%) and $ABBV (-0,11%) have been expanded.

Abbive Q3 2024 $ABBV (-0,11%)

Financial performance

Adjusted EPS for the third quarter was USD 3.00, exceeding the midpoint of guidance by USD 0.10, despite an unfavorable impact of USD 0.04 from R&D spend on acquired IP. Total revenues amounted to nearly USD 14.5 billion, showing strong operational growth of 4.9%, net of a negative currency impact of 1.1%.

Balance sheet overview

Cash and cash equivalents at the end of September amounted to almost USD 7.3 billion.

Details of the income statement

Net revenue for the third quarter amounted to USD 14,460 million, an increase compared to USD 13,927 million in the previous year. Operating income increased significantly to $3,831 million compared to $2,281 million in the prior year. However, net income attributable to AbbVie Inc. decreased to USD 1,561 million compared to USD 1,778 million in the prior year period.

Cash flow overview

Free cash flow was over $11 billion, including approximately $1.5 billion in SKYRIZI license fees in the first nine months of the year.

Key performance indicators and profitability metrics

Adjusted operating margin was 46.7% of sales. The adjusted gross margin was 84.4 %, while adjusted R&D costs amounted to 14.2 % and SG&A costs to 23 % of sales. The adjusted tax rate for the third quarter was 16.2%.

Segment information

• Immunology: Total revenues of over USD 7 billion, with SKYRIZI global sales up 51.5 %.
• Oncology: Total revenues of around USD 1.7 billion.
• Neuroscience: Total revenues of more than USD 2.3 billion, an operational increase of 16%.
• Aesthetics: Global revenues of USD 5.3 billion, a decrease of USD 200 million, mainly due to lower Juvederm volumes.

Competitive position

AbbVie continues to see strong growth in SKYRIZI and RINVOQ and has gained significant market share in the immunology portfolio. The company is also investing in early-stage development projects to secure future growth in the long term.

Outlook and management statements

AbbVie raised the midpoint of its adjusted EPS guidance for the full year to a range of $10.90 to $10.94. Total net sales for the year are estimated to be approximately $56 billion, an increase of $500 million.

Risks and opportunities

The decline in sales of HUMIRA due to competition from biosimilars will be offset by growth in SKYRIZI and RINVOQ. However, the economic situation, particularly in China, is adversely affecting the aesthetics segment, especially Juvederm.

Summary

AbbVie reported a solid financial performance in the third quarter, driven by significant growth outside the HUMIRA portfolio, particularly in immunology and neuroscience. The company is strategically investing in R&D and early-stage drug development to ensure long-term growth. Despite challenges in the aesthetics segment and the decline in HUMIRA sales, AbbVie remains confident in its growth projections, supported by the strong performance of SKYRIZI and RINVOQ. The company has raised its full-year revenue and EPS guidance, reflecting strong operational execution and a strategic focus on innovation and market expansion.

Positives:

• Strong growth in key areas: AbbVie's platform outside of HUMIRA, particularly SKYRIZI and RINVOQ, recorded impressive growth. SKYRIZI global sales increased by 51.5%, while RINVOQ sales increased by 47.4% operationally.
• Robust financial performance: The company reported adjusted earnings per share of USD 3.00, beating the midpoint of guidance by USD 0.10.
• Successful strategic acquisitions: The acquisition of Cerevel Therapeutics strengthens AbbVie's neuroscience pipeline, particularly by providing access to potential compounds such as emraclidine and tavapadone.
• Dividend increase: AbbVie announced a 5.8% increase in its quarterly cash dividend, reflecting the company's confidence in its long-term growth prospects.
• Positive pipeline developments: The company received FDA approval for VYALEV, a transformative therapy for advanced Parkinson's disease, and announced positive Phase III results for tavapadone.

Negatives:

• Decline in HUMIRA sales: HUMIRA's global sales declined by 36.5% operationally due to competition from biosimilars, weighing on overall revenues.
• Challenges in the aesthetics segment: The Juvederm product segment in particular struggled due to economic conditions, resulting in a 19.7% decline in global net sales of Juvederm.
• Pressure on VRAYLAR sales: VRAYLAR sales were impacted by slightly unfavorable channel distribution, resulting in a reduction of the forecast by USD 100 million.
• Economic uncertainty in key markets: Economic factors, particularly in China, continue to weigh on consumer behavior and impact the aesthetics segment.
• Operational challenges in Neuroscience: Despite strong growth, there are concerns regarding the management of placebo effects in ongoing studies that could impact future results.

The trees are putting on their golden-yellow dress, it's getting rainy again and the temperatures are dropping. The golden fall is just around the corner. I take advantage of the cold by only taking cold showers and prepare myself for winter ice bathing. Over the next few days, I'll be swimming in cold water, avoiding hot showers like the plague. Meanwhile, the depot is running. Time for a look back.

I present the following points for the past month of September 2024:

➡️ SHARES

➡️ ETFS

➡️ DISTRIBUTIONS

➡️ CASHBACK

➡️ AFTER-PURCHASES

➡️ P2P CREDITS

➡️ CRYPTO

➡️ WHAT IS REALLY IMPORTANT

➡️ OUTLOOK

➡️ Shares

After the top of the class $AVGO (+0,19%) has deflated, it is now shifting up a few gears again. The +121% performance of $AVGO (+0,19%) increased to +178% last month. There is still some way to go to +200%, but perhaps I will soon have the first trebler in my portfolio. That puts me in a good mood! The heavyweight, which also accounts for the largest volume among the individual stocks in my share portfolio, is attracting other heavyweights such as $WMT (+0,02%) and $NFLX (-0,03%) behind it. The last few months have also seen $SAP (+0,18%) steadily risen in my portfolio and has now already reached 4th place, accompanied by $AAPL (+0,06%) . The former leader $NOVO B (+1,74%) continues to fall but is still performing well. There are also other stocks that are fighting their way up that I did not expect at the time. For example one $ABBV (-0,11%) or $BAC (+0,25%) .

If I look at the performance, I am also spoiled with great results behind the winner. $NFLX (-0,03%) shines with +98%, $NOVO B (+1,74%) with +74% and $SAP (+0,18%) with +72%. When I added the stocks to my portfolio, I would never have imagined that there would be any stocks in my gold box that could double. I'll probably have several of them next year.

And I'm not worried about the basement floor either, as the negative performances are constantly moving towards zero. Step by step. There was also a change in the order at the lower end due to additional purchases. My smallest positions by volume are now $CP (+0%) , $DHL (+0%) and $OR (-0,06%) in terms of performance they remain $NKE (+0,05%) , $DHR (-0,12%) and $CVX (-0,01%) o.

➡️ ETFs

My beloved core retirement savings unit is growing and growing. The biggest chunk, the $VWRL (-0,01%) already accounts for 13.4% of my entire securities portfolio. All I can say here is: stubbornly and steadily save a portion of your net salary every month in the boring bread-and-butter ETFs by standing order and savings plans, then you can successfully escape the monster of old-age poverty. In my opinion, everyone should do this. I'm a fan of distributions because they provide a steady additional income. And by saving continuously, this income increases. I also promote this in my private circle. I think it's a shame that so many people respond to my efforts to raise awareness with "Yes, but ...". By constantly hiding behind excuses that are always the same, people are driving themselves into poverty in old age. Even worse are those who think shares (or securities in general) are the devil's plaything and moan about pensions. On the one hand, they don't understand how the pay-as-you-go system really works, and on the other, they completely lack basic financial education. They think they are throwing money into a certain pot from which they can later withdraw. Interestingly, this is only the case with their own portfolio, not with the state pension.

In addition to broadly diversified standard ETFs, I like to put unplanned inflows into dividend ETFs. I want cash flow that will one day cover my living expenses.

➡️ Dividends

I received 33 distributions on 14 payout days in September. I am grateful for this additional income stream.

Unfortunately, I didn't manage to write the extra article I announced in my last post about how I deal with reinvestments last month. This is planned for this month. My plans $UPS (-0,1%) and $HTGC (-0,84%) into the savings plans remains in place. I already teased this in the last review.

➡️ Cashback

In September, I received a €40 voucher for scanning my daily purchases, which I used to buy overhead headphones that had been on my watchlist for a while. In line with my cashback procedure, I deducted the equivalent value of the voucher in euros from the corresponding provision and transferred it to the exchange. In this way, I use the benefit of the voucher as productive capital instead of just consuming more like others. My budgets for wear and tear and provisions are thus adhered to and the benefit indirectly finances my asset accumulation.

➡️ Subsequent purchases

Thanks to a small bonus, reimbursements from health insurance and supplementary dental insurance and the aforementioned voucher, I was able to make several additional purchases last month. These include the additional purchase of 2 $UPS (-0,1%) and 6 $HTGC (-0,84%) shares as individual additional purchases. I am convinced by both companies. I also invested €27 in the one-off savings plans $SPYD (+0,13%) , €49 in the $TDIV (+0,3%) and €44 in the $FGEQ (+0,09%) invested. Simply to increase the cash flow from the investments. Bit by bit, the tap is being turned on further and further.

➡️ P2P loans

Over a long period of time, I have managed to reduce the amount of defaulted loans on my remaining platforms to a double or single-digit sum. All the rest has been withdrawn. Of course, no progress has been made with interest or redemption payments. I wish the operators would simply write off the rest without replacement so that I could ditch all the platforms. Bondora Go & Grow is an exception to this rule. This is running smoothly, but I'm not putting any new funds into it, I'm just letting it run.

➡️ Crypto

I'm not currently doing anything here. I advise everyone to study the debt cycle and the crypto cycle in order to understand price movements in the long term.

➡️ What is really important

I was on vacation at the end of the month into October, so I spent time with my ex's kids, whose social father I was allowed to be one. First I spent several days with the kids and my ex. I went out in the evenings with the older teenage girl, mainly to give her the attention she was looking for so that she could be the focus of attention herself. In October, we spontaneously went to the capital for a few days at the child's request. This kind of time together with all the experiences helps to strengthen and rebuild the bond, which has of course suffered in recent years, for example due to physical separation. There have been so many great moments over the years, both in the province and in the big city. Enjoying the peace and quiet in the evenings with a great view, listening to what moves her and then the trip to the metropolis with its light and dark sides. And so much more.

Why am I writing this? Because it's moments like these that make life worth living and give us strength in dark times. This is even more valuable than our beloved topics of finance and investment.

➡️ Outlook

The year-end spurt begins very soon. I am hoping for price magic like last year. But the crypto cycle will be even more exciting, as we expect prices to skyrocket at the turn of the year.

Left:

Instagram profile with review: https://www.instagram.com/frugalfreisein/

Threads: https://www.threads.net/@frugalfreisein

X Profile: https://x.com/frugalfreisein

I think I will sell the following titles:

$NVDA (+0,64%)

$AAPL (+0,06%)

$MSFT (+0,12%)

$TSLA (-0,48%)

$LLY (+0,29%)

$BRK.B (-0,05%)

These stocks are very heavily represented in the MSCI World. This reduces cluster risk and frees up capital for speculative growth stocks.

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The REITs remain for the time being as they have positive momentum and will benefit strongly from future interest rate cuts.

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$MRK (-0,15%)

$PFIZER

$JNJ (-0,25%)

Flying out as I don't understand the industry well enough.

$HIMS (-0,99%) remains, on the other hand.

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$KMB (+0,31%)

$ECL (+0,13%)

$CL (+0,08%)

$PG (-0,03%)

$KDP (+0,18%)

$WM (+0,61%)

Defensive stocks are out, as no excess return is to be expected here.

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$AMD (+0,22%) and $INTC (+0,17%) These are my turnaround candidates, as soon as this is completed, they are out

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The following titles are also on the hit list:

$SCI (+0,07%)

$DGE (+0,12%)

$ASSA B (+0,21%)

$PAYX (+0,11%)

$BMY (-0,03%)

$ABBV (-0,11%)

$IBM (-0,14%)

$CVX (-0,01%)

$OXY (+0,32%)

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What do the more experienced among you say? Are there any titles on my list that are worth keeping? Do you see any gross misjudgments? Do you have any suggestions for improvement?

Thanks in advance.