The fundamentals look good. Good cash flow. Sales look good. Basic technicals support an entry point a couple of days ago. What's wrong with this Co? Regardless of being a "takeover", talk me out of buying this tommorrow. Buying for long term in my IRA, not for a quick trade. I am one level above an amateur investor/trader.
IMHO STJ was overvalued as a stand alone company. This was due to the speculation that they would be bought out by JNJ after BSX made their bid for GDT. What your seeing now is those who bought STJ on that speculation selling.
STJ is good company but may resist a buyout and JNJ would not be a hostile bidder.
If your interested in buying STJ I would wait until you see a revesrsal in the stock price. It will be a better buy upon an uptrend rather than the downtrened which it now is in(under distribution).
I happen to agree with you. I got a buy signal using a new methodolgy (new to me any way) when I purchased recently. Turned out to be a false signal or at least the action lately is proving so. Buyout? Maybe? If it keeps dropping, the buyout price will make up for the losses incurred by holding it. I'll probably be out tomorrow on any further weakness and I'm sure I won't be missed because I don't buy stocks on takeover rumors. Just made a bad call here, nothing more. Again congrats to those who make some money here should your buyout occur. I will still keep it in my watch list for possible further trades in it.
I respectfully disagree.I believe JNJ is waiting for a prime opportunity,when a 20%offer above the present price appears appealing.JNJ knows there is going to be some panic selling which is driving down the price.Technically,STJ is already oversold.Aside from that ,due dilegence takes some time.Only time will tell.