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Johnson & Johnson Message Board

  • anekalsreeram anekalsreeram Jul 7, 2005 8:06 PM Flag

    JNJ buy your stock before GDT

    Wake up from slumber JNJ management. Time for tough decision making is now. JNJ stock has pierced through 200 days moving averages like a knife through butter today.

    I suggest a buy back in own stock is a step in right direction.

    Secondly decide one way or other as soon as possible your decision regarding GDT buy out this will stop hemorrage in JNJ stock price.

    JNJ stock holders are loosing confidence in managements ability to deal with the current situation - procrastination is a bad disease.

    Wake up and show some quality leadership NOW.

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    • I use a formula for valuing companies based on net profit margin and top line growth rate.....based on that GDT figures to be worth about 2.5 times revenue or about $29/share. This number would be supported by a current PEG ratio of 1.72. JNJ really ponied up the $s to buy GDT. If JNJ pulled out of the deal GDT would rapidly head for the $29...or lower, since they have two years of rough water ahead of them. I own Jan 50 PUTs in the belief that JNJ will wake up, slap themselves on their corporate forehead and say "what have we done"....payng $25 billion for galactic scale headache.

    • Worse case scenario, what's it going to cost JNJ in earnings growth x's 2 years? Bad as it sounds, maybe nothing or even +? It's going to cost something; we know that.

    • I agree with your assessment, except that the price of GDT stock would drop considerably w/o J&J acquisition, and not move up until GDT shows signs of business recovery, and after the spectre of all of the pending law suits and investigations of criminal activity have abated.

      You have to consider these issues if you are holding GDT stock.

    • That is a good question. Without the JNJ deal pending Gdt could continue on an independent path, develop DES and be a viable IC competitor. It may take a couple of years and some rough waters but Gdt definitely has the resources to survive and to be worth more than $25Bil. Remember Gdt did not beg for a deal JNJ made an offer. End of the line for JNJ CRM forever. Or...Gdt could work out a deal with BSX, ABT, GE, or any number of others who would want an entry in the CRM, IC business. Either way end of the line for JNJ CRM(unless JNJ wants to start over with STJ and possibly end up in the same situation without IC business). This deal will complete because it makes sense for both companies.

    • Yes but the insurance coverage is limated.
      Wyeth had insurance and look at how many 10s of BILLIONS they are paying out beyond their coverage.
      Every one who had this implant is going to sue and none of them will lose,even with the dumbest of lawyers.

    • Anyone who has had a medical procedure in an operating room recently has signed a statement that mistakes may be made, equipment may fail, etc. etc.
      Some of the whiners and criers sueing will probably be successful, but these folks are like the fabled woman suing McDonalds over the hot coffee. They are just a drain on business and opportunists that cost the rest of us money.
      Where can I volunteer for jury duty?

    • No, but I would hope that they knew. My concern, like most others interested, is whether JNJ paid too much and that the discount for GDT's current value is not in the price of JNJ. If this poster is correct in terms of JNJ's ability to clean up GDT and turn resurrect it is true, I think that JNJ's size and power minimizes the threat from recent disclosures of GDT.

      I guess, if you're bullish, that is what you believe and if you are bearish, that is not what you believe. Maybe there is more to learn, but, for now you pay your money and takes your choice or stay away from this deal.

    • "This insight is good and infers JNJ mgt likely knew parameters of this problem when striking the deal. (Not the case with BSX suit.)"

      How do you draw your conclusions from the posting you are replying to?

      Are you a GDT shareholder or a GDT employee?

    • This insight is good and infers JNJ mgt likely knew parameters of this problem when striking the deal. (Not the case with BSX suit.) And isnt GDT insured for this risk?

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