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Your thoughts on JNJ
#11
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.
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#12
Taking right from the JNJ website tonight. Comforting if your a shareholder and are thinking of buying more.

Statement on Reuters Talc Article
New Brunswick, NJ (December 14, 2018) -- Johnson & Johnson today issued the following statement regarding speculation about the safety of our products.

The Reuters article is one-sided, false, and inflammatory. Johnson & Johnson’s baby powder is safe and asbestos-free. Studies of more than 100,000 men and women show that talc does not cause cancer or asbestos-related disease. Thousands of independent tests by regulators and the world’s leading labs prove our baby powder has never contained asbestos. Johnson & Johnson will continue to defend the safety of our product. For the truth and facts about talc, please go to http://www.factsabouttalc.com.

The Reuters article is wrong in three key areas:

The article ignores that thousands of tests by J&J, regulators, leading independent labs, and academic institutions have repeatedly shown that our talc does not contain asbestos.
The article ignores that J&J has cooperated fully and openly with the U.S. FDA and other global regulators, providing them with all the information they requested over decades. We have also made our cosmetic talc mines and processed talc available to regulators for testing. Regulators have tested both, and they have always found our talc to be asbestos-free.
The article ignores that J&J has always used the most advanced testing methods available to confirm that our cosmetic talc does not contain asbestos. Every method available to test J&J’s talc for asbestos has been used by J&J, regulators, or independent experts, and all of these methods have all found that our cosmetic talc is asbestos-free.
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#13
Thanks for posting that.  I had read of the huge awards this summer.  I was unaware they had been accused of knowiing there was an issue for 40 years.  I guess there are about 12,000 lawsuits filed against JNJ including the artificial hip problem which is about 8,000 litigants.  That's an outrageous volume, and the awards get more ludicrous each year.  It's not just JNJ being sued of course.  It's not too hard to figure out why wonder why medical costs are soaring.  I don't suggest negligence or criminal acts go unpunished at all, but this is out of hand and not good for the consumer or the stockholders.  

I expect JNJ may go down a bit more this week before it settles out.  I'd like to think the free fall is about over.  Dividend increases will probably be stingy for a few years.  I'll be paying closer attention to earnings estimates and associated one time charges.
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#14
Johnson & Johnson (JNJ) today announced that the Board of Directors has authorized the repurchase of up to $5 billion of the company's common stock.

Way to fight back JNJ. They also reaffirmed guidance after the close.
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#15
(12-17-2018, 04:33 PM)divmenow Wrote: Johnson & Johnson (JNJ) today announced that the Board of Directors has authorized the repurchase of up to $5 billion of the company's common stock.

Nice to see buybacks on dips and not at ATH's (other companies).
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#16
That is good news. Now is when you need buybacks to stop the bleeding. I wish AAPL had saved the billions cash they blew the past six months when stock was $50 higher. Stock might be $15 higher now. Instead of buying back every quarter I wish they saved it for a rainy day. A year from now we'd be better off if they just earmarked a reserve and collected the interest while they waited for a bargain.
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#17
Resurrecting this thread. I would think, with JNJ's single shot vaccine about to become available, that this stock at present is under-valued. Thoughts?
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#18
Smallish part of their overall revenue stream. Good news of course but not nearly enough to make them undervalued. PFE got the jump and might sell twice as many doses as JNJ for year one. PFE projects maybe 15% of their total revenue for, VAX and JNJ is higher sales base. I really thought it would be worth a few bucks in higher PFE share price. Nope, every bit of gains were retraced. I am just guessing they start over with next years version as this thing mutates and some will need vaccinated at least another year or two. It's going to feed cashflow, just not likely to drive a major Pharma higher. To my knowledge they all agreed to not price gouge, and the GOV paid for a lot of doses even prior to approval to make it worth the accelerated effort if it was a fail. The single dose shot from JNJ is good, but the reality is the world will buy everything any company can manufacture for many months to come.

And my three year old AAPL comments above sound trivial today. Smile
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#19
JNJ could have a real moneymaker in the vaccine IF this turns out to be a yearly thing. And quite frankly, with all the panic going on and stupid COVID rules springing up all over the globe, I wouldn't be surprised to see the governments recommending a booster dose every year. (for the next few years at least) JNJ certainly has the upper side there with a single shot. (saves so much time for everyone)

Also a big boost coming to the medical devices section once non-urgent operations will resume at their normal pace globally.
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#20
Agree a single dose will be the goal going forward. I suspect they will all strive for that next season. They will have more data than any new drug has ever seen.
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