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Bought 1,000 JNJ at 59.98
JNJ hit a 52 week low last week. There have been concerns about upcoming patent expirations, issues with their anemia drugs, and also with drug coated stents. I think this has created a buying opportunity - JNJ's pipeline will produce new drugs and medical devices, and their diversifacation, strong brands, and strong cash flow will maintain growth and eventually the stock will return to its normal multiples.
I was pleased when they passed on the Guidant acquisition and I think buying Pfizer's consumer products made good strategic sense.
JNJ operates in three segments: Parmaceutical, Medical Devices, and Consumer Products. Valuing the sectors separtely at multiples typical of the sectors they operate in suggests JNJ is undervalued.
This is an excellent defensive stock. With so much volatility in the market, and after major indexes have made repetitious new highs, I am very happy to pick up a nice defnesive stock at a 52 week low.
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