Johnson & Johnson (JNJ) is buying back. Here’s your buy back plan. (December 17, 2018)
JNJ
A quick video here on Johnson & Johnson ( NYSE: JNJ ). They report after the bell. They are going to do a stock buyback. That is kind of a big deal and here’s why: You know the drill here. It’s funny, you see all the social justice warriors all ticked off at Johnson & Johnson ( NYSE: JNJ ) because babies are dying and this and that and the other thing.
Look, that may be true, I don’t know. I didn’t even read the article about how they knew about asbestos and talcum powder and all that; I’m just trying to make money, that’s all. I don’t need to change the world. I don’t want to change the world. I like it the way it is. To be ticked off at Johnson & Johnson ( NYSE: JNJ ) because of stuff that they knew or might have known, or whatever, from years gone by. That’s kind of a waste of time. Just go on Twitter and whack away. There’s a lot of hate you can find there. A lot of people who seem to know a heck of a lot, with 15 followers, but they’re really smart. Or you could just look at stock charts.
This is the deal: The story comes out and, Oh it’s so horrible and this and that. Unless I am missing something it’s not like Johnny is on his deathbed at St. Jude’s right now because he got a little baby powder on the butt. This is old news. And when I say old news I am not being flippant. I am not saying it doesn’t matter of course it matters. I am talking about with respect to the stock. This is stuff that has gone from years gone by. YEARS gone by. The downside for Johnson & Johnson ( NYSE: JNJ ) is class action lawsuits. Do we cheat them and how? You know they will be filing, they all do and that’s a given. Johnson & Johnson ( NYSE: JNJ ) has contingencies for that. They are also a big massive company.
The company reports that they are going to buy back stock. Think about this, if they thought that much of this litigation, and there will be litigation, I’m sure there is something already filed; if they thought that much of it they wouldn’t be buying back stock for crying out loud. They would be shoring up their coffers to defend against the lawsuits and the hundreds of billions of dollars, probably “Elon Muskillions” of dollars that they are going to have to pay out. They are not doing that. They are buying back stock. This is how it looks after the bell.
So my what is my suggestion to you? It is pretty simple, as an oversold bounce, buy J&J ( NYSE: JNJ ). There’s your risk, right down there. If the stock ever falls below this low of 126.83, get out because the stock is going lower. I mean it. You are buying the stock here at 130.00. You are talking about a $4.00 risk and you are trading an oversold bounce. I doubt that the stock is going to go up to 150.00 anytime soon but I do doubt that it is going to go to a new low either. I think the worst of the news has been factored in and now the stock is going to start to get a little bit of a lift.
That is how I would trade Johnson & Johnson ( NYSE: JNJ ). I talked about this stock the other day. Just coming back to it again today. I hope these videos help.
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