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Hey All,

Just wondering what your thoughts are on JNJ...a very stable company that has been increasing dividends forever yet is near it's 52 week low because of a few manufacturing problems. Does anyone else see this as an incredible buying opportunity?

What about October Call options at $60 for only .68? That sounds like a solid idea to me...
 

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I'm liking the look of JNJ as well. It has been same price for the last 10 years despite doubling earnings and more than doubling book value. Keep in mind that could indicate that their stock is set to move, or it could mean that wallstreet is ignoring it and will continue to do so for the next 10 years.
While the price is particularly low right now, JNJ is still trading at 3x book value, and could have a long way to fall if bad news arises in the medical/pharmaceutical industry.

I will definately take a hard look into JNJ in september though, when I have some available cash.
 

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For those of you who don't know, Value Line offers their analyst reports on the 30 companies that make up the DJIA free on their website. I wouldn't make investment decisions based on their recommendation but their reports are neat -- you can look up revenues, earnings, dividends etc from that one page. JNJ is a member of the Dow Jones.

http://www3.valueline.com/dow30/index.aspx
 

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While the price is particularly low right now, JNJ is still trading at 3x book value, and could have a long way to fall if bad news arises in the medical/pharmaceutical industry.
Out of curiosity, I didn't realize JNJ's price was so far jacked above it's book value, and "book value" isn't something I've read much about..How far above book is the Dow index (or TSX-60 for example) trading, is this stat available somewhere?

I ran a correlation matrix last week and found JNJ to have a low (and sometimes negative) correlation with the S&P500 and TSX indices, this I am fan of. Of course, the one time it behaved right on with the index was during the '08 crash.

I'm poised and prepared to buy lots of JNJ, but probably not before December or January.
 

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If I were to invest in pharma I would put half my cash in J&J and the other half in Pfizer. J&J is slightly cheaper relative to earnings but Pfizer has a better dividend right now. I speculate both will do well in the future though.
 

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If I were to invest in pharma I would put half my cash in J&J and the other half in Pfizer. J&J is slightly cheaper relative to earnings but Pfizer has a better dividend right now. I speculate both will do well in the future though.
PFE also cut their dividend. No thanks i'll stick to JNJ
 
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