Posts Tagged ‘product recalls’

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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ValueWalk

Peter Schiff Expands Offering to Include Gold Chains in Hopes That Gen Z Will Buy Them

By Jacob Wolinsky. Originally published at ValueWalk.

With precious metals making a massive resurgence in the past month, namely gold, Peter Schiff hopes to capitalize on the ostentatious nature of Gen Z, with their endearment for overpriced clothes and name brands. Schiff Gold is reported to start offering 18k cuban links, bracelets, and other various wearable accouterments.

Q2 2020 hedge fund letters, conferences and more

“These kids need to understand that while they can personally invest in themselves by being dripp...



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Zero Hedge

Kamala Harris Wasn't Biden's First Choice: Axelrod

Courtesy of ZeroHedge View original post here.

Democratic operative David Axelrod says that California Senator Kamala Harris wasn't Joe Biden's top choice for running-mate, and that Harris was picked because of political optics.

"He reportedly clicked well with Gov. Gretchen Whitmer of Michigan, but she would not have fulfilled the desire of those who prioritized a candidate of color," wrote Axelrod in a ...



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Phil's Favorites

As schools prepare to reopen during COVID-19, are the kids alright?

 

As schools prepare to reopen during COVID-19, are the kids alright?

A seven-year-old boy waits at the bus stop in Dallas, Ga., for the first day of school on Aug. 3, 2020. Canadian schools are reopening in September, but is anyone really thinking about the well-being of the children? (AP Photo/Brynn Anderson)

Courtesy of Sydney Chapados, Carleton University

As September approaches and schools prepare to reopen, there are concerns for children, including the risk they might spread COVID-19, ...



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Biotech/COVID-19

As schools prepare to reopen during COVID-19, are the kids alright?

 

As schools prepare to reopen during COVID-19, are the kids alright?

A seven-year-old boy waits at the bus stop in Dallas, Ga., for the first day of school on Aug. 3, 2020. Canadian schools are reopening in September, but is anyone really thinking about the well-being of the children? (AP Photo/Brynn Anderson)

Courtesy of Sydney Chapados, Carleton University

As September approaches and schools prepare to reopen, there are concerns for children, including the risk they might spread COVID-19, ...



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Kimble Charting Solutions

History Says Gold Correction Could Lead to Big Rally!

Courtesy of Chris Kimble

Over a decade ago, Gold rallied past its 1980 highs and over $1000/oz at (1) on today’s chart.

That rise to new highs was met with a 30 percent correction at (2), followed by a blast off rally to new highs.

Is gold setting up for a repeat of its past?

Gold recently rallied past its 2011 highs and above $2000/oz. Could Gold soon turn lower for a sharp correction before another blast off toward $3000?

If so, Gold bulls should look for a pullback, before blasting higher. Stay tuned!

This article was first written fo...



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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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Chart School

Silver Big Channel

Courtesy of Read the Ticker

Big channels are the sand pit of price action. Lets review some big trends of these past months.


GLD
- Moving higher to upper solid red line channel


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XAU
- Ready to pause, or simply explode.



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SILVER
- Ready to pause, or simply explode.


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Digital Currencies

Raoul Pal: "It May Not Be Worth Owning Any Asset Other Than Bitcoin"

Courtesy of ZeroHedge View original post here.

Authored by Turner Wright via CoinTelegraph.com,

Raoul Pal, CEO and founder of Real Vision, says Bitcoin may soon become his only asset for long-term investments.

image courtesy of CoinTelegraph ...



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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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Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



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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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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

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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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