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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.

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    Will Jack Lew be the New U.S. Treasury Secretary?

    Treasurechest1

    U.S. President Barack Obama is preparing to nominate Jacob "Jack" Lew as the new U.S. Treasury secretary, according to a number of reports released today (Wednesday.)

    The nomination could be announced as early as Thursday.

    Lew would replace current U.S. Treasury Secretary Timothy Geithner who made it known he would leave the White House by month's end.

    Sources say President Obama had to convince Geithner, the former head of the New York Federal Reserve Bank, to remain in the position for the duration of the president's first term. Geithner was ready to leave after the nasty debt fight during the summer of 2011.

    The appointment comes as the budget battle on Capitol Hill is heating up.

    Lew would immediately have to tackle major debates in Washington, focusing on what to do with the country's $16.4 trillion debt ceiling (reached on Dec. 31) and how to handle the $1.2 trillion in automatic spending cuts.

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