Posts Tagged ‘Johnson & Johnson’

J&J Needs To Fix It’s Problems Fast

J&J Needs To Fix It’s Problems Fast

Courtesy of YCharts

The announced departure of a top Johnson & Johnson executive last week, Colleen Goggins, who oversaw consumer products, could signal that J&J is moving to put its regulatory problems behind it. That would be welcome news for investors who admire J&J’s business but have been troubled by a recent series of lapses.

J&J has suffered product recalls affecting three of its businesses – over-the-counter medicines, including those sold for children; contact lenses; and hip replacement implants. J&J is accustomed to appearing in Fortune magazine as one of the most admired corporations (#4 this year), but finds itself in the September 6 issue of Fortune as the subject of an investigative story about deterioration of its quality-control operation.

That followed months of coverage of the product problems and recalls in the New York Times and other papers.

So far, despite the problems J&J shares have been moving with other pharmaceutical stocks.

JNJ, PFE, MRK, ABT, LLY Chart

And the worst of the immediate financial impact seems to be the loss of about $600 million in sales after J&J was forced to temporarily shut down an over-the-counter drug manufacturing plant at Fort Washington, Pa. That’s only 1% of J&J’s annual revenue of roughly $60 billion.

JNJ Stock Chart

The recalled over-the-counter products include forms of Motrin, Tylenol, Benadryl, Rolaids and St. Joseph Aspirin, all brands that have commanded a premium price and helped provide to J&J’s consumer business a lush profit margin (operating profits of about 17% of sales vs. about 31% for the pharma and device lines). Here are margins overall for J&J:

JNJ Stock Chart

The impact from the contact lens and hip implant recalls is less clear; in coming years J&J could end up paying for thousands of patients to have new implants installed. But the bigger threat is that J&J ceases to receive the benefit of the doubt from consumers; why buy St. Joseph Aspirin or Tylenol instead of generic brands if the J&J reputation is tarnished? And, just as importantly, will it lose the trust of regulators?

The Food and Drug Administration not only regulates the Fort Washington plant, but also oversees J&J’s efforts to license new drugs and sell medical devices. It’s not a good idea to embarrass an agency that holds that much sway over your business.

J&J is unusual…
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The Big Apple

The Big Apple

Apple Introduces Video iPod Nano

Courtesy of Joshua M Brown, The Reformed Broker 

Apple ($AAPL) now has a market cap of around $215 billion.  Incredible, and it couldn’t have happened to a more deserving company – they’ve changed the world.

More astonishing than the number itself is the list of companies whose market caps have been eclipsed by the tech king…

Apple is now bigger than Berkshire Hathaway, General Electric, Proctor & Gamble, Johnson & Johnson, Google and JPMorgan Chase

The only companies larger right now are Microsoft, ExxonMobil and Wal-Mart.

One other thing to consider – it all started with a device shaped like a deck of cards that was created to compete with the Sony Walkman - The iPod.  Think of how many millions of devices sold as a direct consequence of the triumph and mass adoption of iTunes and the iPod.  The dollar value created on the back of that product pairing is absolutely mindboggling.

For the details of who stands where by market cap, click the link below.

Source:

The Most Valuable Companies in America (Fortune)


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Phil's Favorites

Bloomberg's Ted Merz Joins Me on Panic with Friends to Discuss Financial Journalism and Information Dissemination in the Age of Social Media

 

Bloomberg’s Ted Merz Joins Me on Panic with Friends to Discuss Financial Journalism and Information Dissemination in the Age of Social Media

Courtesy of Howard Lindzon

My friend Ted Merz at Bloomberg has one of the most interesting jobs in the world. Ted has been at Bloomberg since 1991 and today heads Bloomberg’s Global News Product. That is a complicated job and this is a complicated era of news considering the 24/7/365 flow of information, misinformation and of course news. Ted makes it all look easy. I mi...



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Zero Hedge

Microsoft Patents AI-Chatbots That Imitate Dead People 

Courtesy of ZeroHedge View original post here.

The United States Patent and Trademark Office (USPTO) granted Microsoft one of the most bizarre patents to date: chatbots using deceased people's personal information. 

...



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Kimble Charting Solutions

Bitcoin Parabolic Rally Reversal Faces Big Support Test!

Courtesy of Chris Kimble

One of the biggest breakouts of 2020 came by way of Bitcoin. And it was epic.

The coronavirus crash saw the cryptocurrency retest its 2018 lows before rocketing higher in parabolic fashion.

Did Bitcoin Peak? What’s Next?

Today we examine a “weekly” chart of Bitcoin, highlighting its parabolic rally… and recent reversal lower.

The rally in Bitcoin surged all the way to the 361% Fibonacci extension level at (1) before creating the largest bearish reversal in years.

In just a few weeks time, Bitcoin is testing its 261% Fibonacci level near 31,000 at (2). This is a big test of support for the cryptocurrency. A “weekl...



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ValueWalk

Hybrid Electric Vehicles: A Stay of Execution for NiMH Batteries

By Jacob Wolinsky. Originally published at ValueWalk.

Hybrid Electric Vehicles: A Stay of Execution for NiMH Batteries, Explores IDTechEx

Q4 2020 hedge fund letters, conferences and more

NiMH Batteries Are Still Commonly Used

When we talk about battery-electric vehicles, the lithium-ion battery is dominant; however, for full hybrid electric vehicles (those that have electric-only modes but do not plug-in), NiMH batteries are still the most common battery on the road. With the growing market for hybrid electric vehicles (HEVs), will this drive further demand for NiMH batteries and stop them from being eliminated from the automotive market?...



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Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Saturday, 11 July 2020, 05:26:16 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: This is lack of liquidity means support is likely to break if it is tested hard!



Date Found: Saturday, 11 July 2020, 09:51:58 PM

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Comment: Nasdaq losing momentum.



Da...

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Politics

What is the 'boogaloo' and who are the rioters who stormed the Capitol? 5 essential reads

 

What is the 'boogaloo' and who are the rioters who stormed the Capitol? 5 essential reads

Rioters mass on the U.S. Capitol steps on Jan. 6. Samuel Corum/Getty Images

Courtesy of Jeff Inglis, The Conversation

In the wake of the insurrection on Jan. 6, the U.S. is bracing for the possibility of additional violent demonstrations and potential riots at the U.S. Capitol and state capitol buildings around the nation. W...



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Biotech/COVID-19

The simple reason West Virginia leads the nation in vaccinating nursing home residents

 

The simple reason West Virginia leads the nation in vaccinating nursing home residents

By mid-January, only about a quarter of the COVID-19 vaccines distributed for U.S. nursing homes through the federal program had reached people’s arms. Paul Bersebach/MediaNews Group/Orange County Register via Getty Images

Courtesy of Tinglong Dai, Johns Hopkins University School of Nursing

The urgency of vaccinating nursing home residents is evident in the numbers. The COVID-19 pandemic has claimed the lives of mo...



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Mapping The Market

The Countries With The Most COVID-19 Cases

 

The Countries With The Most COVID-19 Cases

By Martin Armstrong, Statista, Jan 12, 2021

This regularly updated infographic keeps track of the countries with the most confirmed Covid-19 cases. The United States is still at the top of the list, with a total now exceeding the 22 million mark, according to Johns Hopkins University figures. The total global figure is now over 85 million, while there have been more than 1.9 million deaths.

You will find more infographics at ...



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Digital Currencies

Bitcoin: why the price has exploded - and where it goes from here

 

Bitcoin: why the price has exploded – and where it goes from here

B is for blast-off (but also bubble). 3DJustincase

Courtesy of Andrew Urquhart, University of Reading

Bitcoin achieved a remarkable rise in 2020 in spite of many things that would normally make investors wary, including US-China tensions, Brexit and, of course, an international pandemic. From a year-low on the daily charts of US$4,748 (£3,490) in the middle of March as pandemic fears took hold, bitcoin rose to ju...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Promotions

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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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