Where does the 1 year projection come from if the share price is unsustainable at 109? I'm assuming it's coming from analysts who have more insight into the company's financials than most investors do.That projected value number hasn't changed in a while.
As a former employee of JNJ ( 24 years ) any one in their right mind would just buy, buy, buy and hold, hold, hold. GREAT company that knows how to make $$$.
Sentiment: Strong Buy
JNJ is a very mature company, and its growth has slowed down a lot. I am sure you're familiar with higher growth pharma or bio-tech co's such as ABBV or GILD. Long term, they have a much better chance to increase share holder value, albeit with higher chance of wilder share price swings. Good luck.
That's an interesting trading strategy but what I'm not interested in trading or doing options here on this stock, there are better stocks to trade that offer more return and volatility such as many of those in the commodity sector. What I'm referring to here is comparing whether JNJ or a healthcare ETF would be better for a long term, Warren Buffet like, stable investment where I can put a large chunk of my money for many years without checking it everyday.
JNJ's triple A rating relates to the strength of its finances relative to debt: "The top AAA rating is reserved for those companies with the utmost financial strength and discipline in meeting all obligations." That is absolutely no guarantee of share price behavior. If you'll look at the 5-year or 10-year price charts, you'll see that the price ran up to $109 at an unsustainable rate of increase. The current price is perfectly in line with long term performance. Share price fluctuation in this case reflects the behavior of unrealistic investors, not of the company. It's a buying opportunity for investors with long term goals.
When JNJ is down like now, buying its shares are more rewarding when it goes back above 100 than the ETF you are talking about. Second, you can write covered calls on your shares for extra income. And third, instead of buying the shares out right, you can start by selling short term puts and make money on option premiums. In case you get put those shares, then you buy them and ride them up before finally selling the covered calls.
I posed this question in response to another post- why on earth would anyone buy JNJ when it consistently and substantially underperforms healthcare ETF funds in terms of total return (for example the Vanguard Healthcare Fund)? The only reason to buy individual stocks is to achieve a greater return than the ETF, because the ETF always has a far lower risk than buying an individual company. I am not saying that JNJ is a bad investment but just not as good as the ETF.
Because it may make sense to have a small amount of bonds in addition to stocks for diversification of your portfolio.
Now here is a far more relevant question back to you - why would anyone buy JNJ when it consistently and substantially underperforms healthcare ETF funds in terms of total return (for example the Vanguard Healthcare Fund)? The only reason to buy individual stocks is to garner a greater return than the ETF, because the ETF always has a far lower risk than buying an individual company.
This dilemma is so unfortunate, and due to the lingering effects of the Weldon/McCoy era. During their 10 fateful year reign, they gutted the enterprise of true talent, fired anyone who opposed them and took well over $500 million of 'personal incomes' from the company. Then Weldon audaciously stole another $140 million on his way out the door, to go into 'retirement' on two islands he purchased off the coast of Florida. Similar to the Bush/Cheney years of malaise on the US and the world. The long term damage is on the mend, but will still take about 3 to 5 yrs to truly repair. Best wishes to all JNJ investors.
Sentiment: Strong Buy
Last year, end of day 11- 13, stock price was 109.07. This year, 08 -25, end of day, 90.73. End of day yesterday, 96.22. Is this how a triple A rated company's price behaves? I'm just confused as to the downward trend in price, when a projected 1 yr estimate is 109.66? Is the company having internal management issues or is this attributable to manipulation by fund managers? I'm still concerned about their rising debt levels and decreasing revenue stream.
Every kid who ever had a Band-Aid put on them by their mother is suing JNJ for permitting their mother to practice medicine without a license. The loss of JNJ will be enormous.
Please before you jump out of your 100th story window, call your broker and sell your JNJ. I will gladly buy it from you and the fire sale price.
Although, JNJ even at current level is one of the best long term investment, tomorrow u will get an even lower entry point. China stock market already down almost 6%
Congrats on the brand new username, Kenny. Relax, nobody will know that it's the same old illiterate DumDum.