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While Washington Stews, You Can Cash In on the Biggest "Tax-Inversion" Deal in History

Back in June 2012, we recommended that you pick up shares of Big Pharma player Abbott Laboratories Inc. (NYSE: ABT). The reason: Abbott was planning to split in two at the end of the year, meaning folks who took our advice would end up with stakes in two companies for the price of one.

There was more than bargain-basement thinking at work here.

You see, these corporate breakups – known as spin-offs – have a habit of turning into market-beating profit plays. And the newly minted spin-off firms often end up as takeover fodder – also at big profits.

Abbott followed part of that blueprint.

  • This Alzheimer's "Pacemaker" Could Be the Bridge to a Cure There's good news for Alzheimer's patients after all...

    This news comes at an opportune time. Just last summer, the whole effort suffered a major setback.

    That's when three Big Pharma firms said they were halting development of Alzheimer's compounds because the medicines simply didn't work. No doubt, that was a blow for both patients and investors in Eli Lilly & Co. (NYSE:LLY), Pfizer Inc. (NYSE:PFE), and Johnson & Johnson (NYSE:JNJ).

    But this month we learned that a research team at Johns Hopkins has for the first time implanted a promising device into the brain of a U.S. Alzheimer's patient. It seems to combat the effects of Alzheimer's by providing deep-brain stimulation. It works very much like the pacemaker that's normally used in the heart.

    Over the next year or so, a total of 40 patients will receive the implants under a federally funded trial.

    This is a big move with very promising potential. You see, doctors have used a similar device to control Parkinson's disease for about the past 15 years, with some 80,000 patients receiving the implants. They report having fewer seizures and needing less medication.

    I believe this very well could be the bridge technology we need until a true "cure" for Alzheimer's is found. Right now, the chances look good that this interim step will succeed.

    "This is a very different approach, whereby we are trying to enhance the function of the brain mechanically," says Dr. Paul B. Rosenberg. "It's a whole new avenue for potential treatment for a disease becoming all the more common with the aging of the population."

    As high-tech investors, we need to keep an eye on this research and be ready to pounce when a medical-device maker gets it to market.

    I don't know just when that will happen. But when it does, you can bet that I'll drop you a line.

    Meantime, I have four more fascinating developments to share with you today.

    Take a look...

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