Walking Away From JNJ

OCTOBER 20, 2019. Looking for trouble is unneeded. Plenty exists.
We’ve warned against one since August 29th. It’s glowed right before us, everyday. JNJ, and it proved that trouble, clinically. On October 11, Bernstein analyst Lee Hambright charmed JNJ with an upgrade to “Outperform,” and a price target of $155. Seven days later shares dropped -6.22% on greater than triple volume. Why? FDA testing revealed asbestos contamination in its” baby powder. That came right on the heels of the massive judgment against the company for it’s antipsychotic Risperdal, creating a new nightmarish third legal front. That judgment was for $8 billion, for one individual.
Meanwhile, the company suggested it was “open” to a collective settlement of thousands of looming lawsuits relating to its’ part in the opioids plague. And in the foreground Purdue Pharma is being eviscerated on the very same charges. This month comes the start in Ohio of the first federal-level opioids case.
New Brunswick-based Johnson & Johnson has for decades been viewed as a cozy haven of stability and payouts to investors in all markets. Besides the Bernstein upgrade, eight days ago Barron’s named it as one of its’ five best dividend plays. For now JNJ will be more known as a defendant, on multiple fronts. Their payouts in the future will look very different. “Walking Away From JNJ.”
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Off Label. JNJ. Just Say No.

AUGUST 29, 2019. Savvy investing’s bone-simple at its’ core. Buy lower and sell higher. The problem is what lies in-between. What lies in-between is known as risk. Risk comes in two forms. You don’t want any of either.
“Market risk” can only be avoided by not buying. “Individual issue risk” can be selected and “managed” by knowing what and when you’re buying. And Johnson & Johnson?
Opioids have proved a problem whether prescribed, taken, or neither. No? Then why are forty of fifty states already on-board and suing? Who wants trouble? Is buying JNJ’s trouble really “defensive?” Not everyone’s scheduled for court, tens of thousands of times. “Off Label. JNJ. Do Not Drive, Operate Heavy Machinery, or Invest…” Continue reading Off Label. JNJ. Just Say No.