Well, the market was in the dumps yesterday and is even worse today. So this may be a good time to check on my list of stocks for those looking for equities that are stable enough to ride out this bearish storm.
The standard for comparison will be the Standard & Poor's 500 Index, which closed on June 30, 2008 at 1,280.00. The following are the five stocks with closing prices from July 1.
1) Johnson and Johnson (NYSE: JNJ) -- when recommended the stock closed at $64.34 and paid a 2.89% dividend yield. It finished at $71.70 -- up 11.44%
2) Teva Pharmaceuticals ADR (NASDAQ: TEVA) -- when recommended the stock closed at $45.80 and paid a 1% dividend yield. It finished at $46.41-- up 1.3%.
3) Chubb Corp. (NYSE: CB) -- when recommended the stock closed at $49.01 and paid a 2.64% dividend yield. It finished at $48.39 -- down 1.26%.
If Barack Obama is receiving advice from "my pal Warren" then he must not be listening. There is no way that Warren Buffett, the national debt hawk, would support Obama's stupid idea of giving another $1,000 back to every family in America. It is reported that he would pay for this by creating a windfall profit tax on oil companies.
This give-away program is an attempt to buy votes plain and simple. It would add to the national debt, discourage oil companies from investing and worse it would handicap American companies more than others and mortgage more of our children's futures.
The last thing the people of the United States need is more deficit spending. If we did tax oil companies, which I am against, I would only support using the funds for expanding education, research and development in science and engineering with the goal of maintaining our waning leadership in technology.
Johnson & Johnson (NYSE: JNJ) Q2 2008 Earnings Conference Call July 15, 2008 8:30 AM ET Management Summary
Operator
Welcome to the Johnson & Johnson second quarter 2008 earnings conference call. (Operator Instructions) I would now like to turn the conference call over to Johnson & Johnson.
Louise Mehrotra, Vice President of Investor Relations
Good morning and welcome. I'm Louise Mehrotra, Vice President of Investor Relations for Johnson & Johnson, and it is my pleasure this morning to review our business results for the second quarter of 2008. With me on the call today is Dominic Caruso, Vice President of Finance and Chief Financial Officer.
A few logistics before we get into the details. This review is being made available to a broader audience via a webcast accessible through the investor relations section of the Johnson & Johnson website. The press release that was sent to the investment community earlier this morning includes the schedule showing sales for major products and/or business franchises to facilitate updating your models. The press release is also available on the Johnson & Johnson website. I will review highlights of the second quarter 2008 results for the corporation and for our three business segments. Following additional remarks from Dominic, we will open the call to your questions. We expect the total call to last approximately one hour.
Johnson & Johnson (NYSE: JNJ) shares rose over 2% by 12:45 on a day the market saw some scary dips earlier and the S&P 500 is still in the red.
The health-care giant is rising after it reported its second-quarter financial results, posting an 8% growth in profit to $1.18 per share (excluding one time charges) and a 9% increase in total revenue to $16.45 billion. The results handily beat analyst expectations (according to Thomson Financial) of $1.12 per share, on revenue of $16 billion. Not only that, but the company also increased its 2008 earnings forecast.
J&J execs claim the company wasn't being significantly hurt by the weakened U.S. economy, and judging from the effect of the lower dollar, which was responsible for 5.6% of the 9% higher revenue, perhaps they're right. Still, the company can't ignore that while international sales jumped 16.2%, U.S. sales increased only 2.1%.
But among the different pharmaceutical companies, it seems there is little doubt that J&J is better poised to ride this global economic downturn; as opposed to to pure-play pharmas, J&J has a more diversified business model. Already the difference was clear in this quarter's results and will probably make even more of a difference in the future, as many pharma companies lose sales to generic drug makers when products go off patent.
As the second quarter earnings crunch begins in earnest this week, the bear market has investors jittery and prognosticators spinning out dire warnings. In the wake of mixed results from Alcoa (NYSE: AA) and General Electric (NYSE: GE) kicking things off last week, here's a look at what Wall Street is expecting from many of the companies scheduled to report this coming week.
Analysts surveyed by Thomson Financial are expecting the following companies to report a rise in earnings when compared to the same period of the previous year.
Nucor Corp. (NYSE: NUE): $1.80 EPS (36.6%) on sales of $6.4 billion (+53.0%)
Google Inc. (NASDAQ: GOOG): $4.74 EPS (24.9%) on sales of $3.9 billion (+41.6%)
Nokia Corp. (NYSE: NOK): 56 cents EPS (23.2%) on sales of $19.9 billion (+17.8%)
CSX Corp. (NYSE: CSX): 90 cents EPS (21.1%) on sales of $2.9 billion (+12.8%)
Altera Corp. (NASDAQ: ALTR): 27 cents EPS (18.5%) on sales of $346.7 million (+8.4%)
IBM (NYSE: IBM): $1.82 EPS (+17.6%) on sales of $25.9 billion (+9.0%)
eBay Inc. (NASDAQ: EBAY): 41 cents EPS (17.1%) on sales of $2.2 billion (+18.0%)
Updating the story with the final numbers heading into the week end. The market looked sad again today, so I thought I would spot-check Serious Money: Five stable stocks for troubled times, to see if my picks, (suggested watchlist considerations) were holding up...so far so good, sort of...
The standard for comparison will be the Standard & Poors 500 Index, which closed on June 30, 2008 at 1,280.00. The following are the five stocks with closing prices from July 1.
1) Johnson and Johnson (NYSE: JNJ) closed at $64.34 and pays a 2.89% dividend yield. (NOW $66.53 -- up 3.4%) finished at $66.26 -- up 2.98%.
2) Teva Pharmaceuticals ADR (NASDAQ: TEVA) closed at $45.80 and pays a 1% dividend yield.( NOW 42.58 -- down 7%) finished at $41.78 -- down 8.78%.
3) Chubb Corp (NYSE: CB) closed at $49.01 and pays a 2.64% dividend yield. (NOW $47.51 -- down 3%) finished at $47.56 -- down 2.96%.
After seeing the interest in yesterday's Serious Money: Five stable stocks for troubled times, I decided to track the stocks on a quarterly basis to see how they hold up over time (otherwise, what would be the purpose of discussing them in the first place?).
I said that all five have shrewd, conservative management teams and have been in the right place, at the right time -- and prepared. The standard for comparison will be the Standard & Poors 500 Index which closed on June 30, 2008 at 1,280.00. Although my original story was published yesterday, I will be using the second quarter end point for my five stocks as well.
This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.
Tylenol is probably the most recognizable brand name for the pain reliever acetaminophen. In addition to being a pain reliever, Tylenol also reduces fevers. It was created in 1955 as Tylenol Elixir for children, and was the first aspirin-free pain reliever. It was initially available only by prescription, but became available without a prescription in 1960.
The product is made and marketed by McNeil Consumer Healthcare, a brand owned by Johnson & Johnson (NYSE: JNJ). Tylenol falls within the Consumer segment of J&J, which had sales of $14.5 billion in 2007. Over-the-counter pharmaceuticals represented $5.1 billion in sales, or 35% of the segment's sales.
Excedrin is a pain reliever that combines acetaminophen, aspirin, and caffeine. (Caffeine is known to enhance the effectiveness of aspirin and acetaminophen.) It's a product of Novartis (NYSE: NVS), a Switzerland-based company that bought the Bristol-Myers Squibb (NYSE: BMY) consumer medicine business in 2005. Novartis produces a variety of consumer health care products, with 2007 revenue of $39.8 billion.
Analysts surveyed by Thomson Financial expect Intel Corp. (NASDAQ: INTC) to post a smaller profit for the first quarter, while Johnson & Johnson (NYSE: JNJ) is expected to report a profit gain. Both companies are scheduled to report results on Tuesday.
Intel is expected to earn 25 cents per share, which is down 7.4% from the same period in 2007 when it earned 27 cents. But the company has tended to beat quarterly estimates recently. In the third quarter of 2007, it beat the consensus estimate by 2.1%. However, in the fourth quarter it fell short by 2.2%.
Santa Clara, California-based Intel remains the leading maker of semiconductors. In the past year, its revenues were $38.3 billion and its net income totaled $6.97 billion. Its EPS growth forecast for the year is 9.7%, which is better than the technology sector average and the S&P 500. The consensus recommendation of analysts is still to buy Intel.
The stock has gained 3.8% in the past year and it trades at a P/E of 18.00. Shares closed Friday at $21.24.
On 3/13/08, the FDA Oncologic Drugs Advisory Committee (ODAC) is scheduled to review the use of Erythropoiesis stimulation agents, including Aranesp and JNJ's Procrit, to treat chemotherapy induced anemia.
AMGN March option implied volatility is at 51; April is at 41; above its 26-week average of 33 according to Track Data, suggesting larger price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
It is interesting to see how one piece of news can have a different impact on two stocks. The news? The Food and Drug Administration found that anemia drugs are tied to increased risks of death and faster-spreading tumors at high doses.
Amgen Inc. (NASDAQ: AMGN) makes Aranesp and Epogen, while Johnson & Johnson (NYSE: JNJ) makes Procrit, all used to help cancer and kidney disease patients overcome anemia. But now the FDA says these drug show greater risks for patients with certain cancers on tumor progression and survival, as well as blood clots. While both companies believe the risks were seen when the drugs were given for unapproved uses, including higher-than-recommended doses, it is possible that following the study, the FDA may recommend to end the use of these drugs for patients whose anemia is caused by cancer chemotherapy, or who are at greater risk, but still allow it for kidney disease patients.
Still, as some analysts believe, with the recent updates both companies had on product prescribing and labeling, it is unlikely the drugs will be completely inadvisable for use in cancer patients as they allow the cycle of chemotherapy to continue more smoothly, helping to strengthen them after each treatment. It is more likely the companies will work with the FDA for better regulation on these drugs.
On the news, Amgen shares fell nearly 2%, while JNJ shares climbed over 1%. Surprising? Not really.
You know the old adage for success in the stock market -- buy low and sell high. Well unfortunately too many Americans today are doing the exact opposite as they seek coverage from a very volatile stock market. They bought when this market was near the top and are now selling in panic.
I prefer to watch two men who clearly know how to buy low and sell high -- Warren Buffett (also known as the "Oracle of Omaha" and Bill Miller, a very successful fund manager at Legg Mason, who is known for his 15-year winning streak against the Standard & Poor's 500 stock index.
So are they selling or buying? Both are buying and buying big. According to Sunday's Washington Post, Buffett upped his stake in Kraft Foods (NYSE: KFT), Johnson & Johnson (NYSE: JNJ), U.S. Bancorp (NYSE: USB), and Wells Fargo (NYSE: WFC). He also took a new stake in GlaxoSmithKline (NYSE: GSK). Buffett disclosed that he owns 132 million shares in Kraft, which means he owns 8.6% in the maker of Ritz crackers, Philadelphia cream cheese, and Maxwell House coffee.
Yesterday when I posted Why complain about GE and not JNJ -- a puzzle? I got my answer. Investors do have patience, but it's limited. They will wait three years for positive results, but maybe not five, and ten -- forget about it!
As you can see from yesterdays' chart comparing three-year performance, there is no difference and in both cases the stocks are down. The difference is nobody is demanding that heads should roll at Johnson & Johnson (NYSE: JNJ) while they are at General Electric Company (NYSE: GE).
I have been following General Electric Company (NYSE: GE) and Johnson & Johnson (NYSE: JNJ) for many years. This is probably very common among investors since both are broadly held, very large-cap stocks. Both companies have illustrious histories, strong management, and have been very rewarding to investors over the years -- but not the past few years!
Both stocks seem undervalued to me and I have been thinking about buying some shares. I own some JNJ already and might want to own GE if I can get it at a deep discount. This got me thinking about another issue. Investors have been expressing their frustration with GE's lack of appreciation over the last few years and some have gone as far as to call for the split up of the company and/or the resignation of CEO Jeffrey Immelt.
For some reason Johnson and Johnson has not suffered the same fate. However, when you look at the following chart that shows three year stock performance you will notice great similarity.
Well, the market was in the dumps yesterday and is even worse today. So this may be a good time to check on my list of stocks for those looking for equities that are stable enough to ride out this bearish storm. 
If Barack Obama is receiving advice from "my pal Warren" then he must not be listening. There is no way that Warren Buffett, the national debt hawk, would support Obama's 
Johnson & Johnson
As the second quarter earnings crunch begins in earnest this week, the bear market has investors jittery and prognosticators spinning out dire warnings. In the wake of mixed results from 
Updating the story with the final numbers heading into the week end. The market looked sad again today, so I thought I would spot-check 
This post is part of our 
Intel is expected to earn 25 cents per share, which is down 7.4% from the same period in 2007 when it earned 27 cents. But the company has 
Amgen
You know the old adage for success in the stock market -- buy low and sell high. Well unfortunately too many Americans today are doing the exact opposite as they seek coverage from a very volatile stock market. They bought when this market was near the top and are now selling in panic.
Yesterday when I posted 
Apple (AAPL) iTunes loses artists - an antitrust problem?
U.S. Q2 GDP of 3.3% likely to be fleeting
Cramer on BloggingStocks: Don't bother with the private-equity chatter 
