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JNJ
#1
Looks like it will stay out of my wife's portfolio a little longer. Angry I'm guessing this will bump it away from my buy range a little further.

NEW BRUNSWICK, N.J., Jan. 21, 2014 /PRNewswire/ -- Johnson & Johnson (JNJ) today announced sales of $18.4 billion for the fourth quarter of 2013, an increase of 4.5% as compared to the fourth quarter of 2012. Operational results increased 6.3% and the negative impact of currency was 1.8%. Domestic sales increased 7.4%, while international sales increased 2.4%, reflecting operational growth of 5.6% and a negative currency impact of 3.2%. Worldwide sales for the full-year 2013 were $71.3 billion, an increase of 6.1% versus 2012. Operational sales increased 7.7% and the negative impact of currency was 1.6%. Domestic sales increased 7.0%, while international sales increased 5.4%, reflecting operational growth of 8.2% and a negative currency impact of 2.8%. Sales for the full year included the acquisition of Synthes, Inc. which was completed in June 2012. Excluding this impact, net of the divestiture of the DePuy trauma business, worldwide operational sales growth was 5.2%.

Now I have to go update my spreadsheet and see.

... And then it opens with a drop. So much for trusting Mr. Market's reaction. Guess I better go read the earnings report.
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How do they get the deer to cross at that yellow road sign?

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#2
You might just get it. Down over 2% today.
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#3
(01-21-2014, 11:08 AM)ChadR Wrote: You might just get it. Down over 2% today.

I entered a limit buy order at $92.50 for the day. We'll see.
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#4
I'm holding out for a 3% yield @ 88. Doubt it goes there but we will see.
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#5
(01-21-2014, 12:03 PM)fiveoh Wrote: I'm holding out for a 3% yield @ 88. Doubt it goes there but we will see.

I doubt it will go to $88, but you can still get 3% yield. They will probably be raising the dividend again in the next few months.
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#6
Well, watching it bounce all over the place made me do some envelope calculations. According to S&P data sheet, GAAP fully diluted earnings past 4 quarters was $4.81 vs. $3.86 in 2012, a 24.6% increase -- wow Big Grin . Revenues up 6.1% for the year including currency adjustments.

Took the plunge with a 1/3 position at $94.00 with commission so ended about breakeven on the day. This put the P/E at 19.5 so didn't break my "never pay over 20 P/E" rule. Yield on cost is 2.8%. Not what I really wanted but with half a century of dividend increases, their new drugs picking up steam, their broad coverage of drugs, devices and consumer products, I think we'll be OK. At least the compounding begins as time runs out in about 10 years or so. Maybe I can catch a big chunk on the next market upset and better the return.

Sometimes, you have to take what the market offers. Would've been nice to see $88.00 again but once the dust settles I don't think that will be soon. At least a gaping hole was filled in the portfolio diversification.

I really wanted to wait on this but it is such a strong company. I ended up in the same boat watching GIS around 40 hoping to get in around 38 and a P/E a hair under 15. Then BAM (to paraphrase Emeril), it rode up to 50.
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How do they get the deer to cross at that yellow road sign?

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#7
After finding the Inside Chevron video last night, have been searching for other videos in the series and found this one on JNJ from Aug 2014.

Inside Johnson & Johnson - Bloomberg

Didnt know about the 'no strings attached' incubator labs that JNJ runs for other small businesses - hoping to get a deal out of the R&D. Thats a really interesting approach.
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