What most don;t realize is that those earlier sales volumes will never come back it's not lack of product but reputation that is severely tarnished imo...
Also ost don;t realize the magnitude of the drop !
10% is staggering 20% is shocking !
30 % is unbeleivable !
40% is in guness book territory for a large pharma (multi products )
50% is catastrophic and threatens the viability of the company if this was their only business !
Beleive me this must test 52 week low as that low was reached when none of this information was known.
Because many people have seen these dow stock big caps always recover they buy the dips this time you are going to learn the lesson the hard with with your wallets for ignoring reeality and cold hard facts imo !
"Those recalls, followed by an absence of those medicine in stores, significantly hurt the company's over-the-counter drugs business. Its OTC sales tumbled 53% in the fourth quarter, costing the company $300 million in lost sales in the period as $900 million in lost sales for the year.
Johnson & Johnson also issued a full-year 2011 profit outlook of between $4.80 to $4.90 a share, also weaker than analysts' estimates.
Analysts, on average, had expected the company to earn $4.97 a share on average for the year, according to Thomson Reuters.
IMO they will make less than 4.00/share I willl refer to this post to prove it later ...
The problem with your otherwise dazzling work is that hyper exaggeration of a real problem tends to discredit everything you wrote.
JNJ has had 17 product recalls in since September of 2009. Each is expensive, damages the company image, and collectively call into serious question the competence of the CEO. Management problems are like cockroaches. For everyone you see there are probably a dozen more and that's the problem on the table. Weldon needs to go and the company needs to get on with the business of correcting problems and restoring confidence. Both are doable. It might also be worth mentioning that for 2010 revenue slipped 1/2 of a percent. Not exactly "catastrophic" by most standards but clearly reason for concern. Your suggestion that the company will never recover seems to ignores the fact that they recovered from cyanide laced Tylenol in the 1980s. This isn't quite that bad. I think there is at least hope.
IMO this is largely a test of the Board of Directors. The smart move now it to find a new CEO.
Funny, this reminds me of a message on the KMP message board earlier today: