I'm well aware JNJ PE is not 223. PE 14 in 2020 sounds good but the 2020 "E" is the point of this thread. In any event JNJ was NOT anything like cheap with their 5% +/-growth rate before this happened. I've owned and followed JNJ for about 24 years so if I sound like a short shill you'd be very wrong. Today surprised me and I want to believe it's overblown. I'm out now by sheer luck as I mentioned. I've sold a $1000 worth of puts on every small dip trying to get forced back in but it never cooperated. And L-T is the right attitude. It almost always works out for a quality company. This reminds me of the tainted Tylenol cases waaay back when. They recovered but it didn't happen quick.
You can say it's an over-reaction if it helps you, but JNJ just lost a $4.9 billion with a "B" lawsuit on the same subject. That seems more relevant tonight. That has impact on earnings but I originally brushed it off. Then today happened. It's a fact JNJ is a litigation target, like all the major drug companies, and there is blood in the water right now on this particular matter. I'll be watching closely for a re-entry point. I have no idea if that is Monday or 2020. For now I think it finds a trading range for quite a while. It will be awhile before I'll hope to know what "cheap" might be.
You can say it's an over-reaction if it helps you, but JNJ just lost a $4.9 billion with a "B" lawsuit on the same subject. That seems more relevant tonight. That has impact on earnings but I originally brushed it off. Then today happened. It's a fact JNJ is a litigation target, like all the major drug companies, and there is blood in the water right now on this particular matter. I'll be watching closely for a re-entry point. I have no idea if that is Monday or 2020. For now I think it finds a trading range for quite a while. It will be awhile before I'll hope to know what "cheap" might be.