Johnson & Johnson: Damaged Goods?

  • Second time this year in 2018, JNJ (Johnson&Johnson) has been targeted for it’s knowledge of asbestos in its world-famous talc baby powder.
  • Will thse issue conintue to occur? Should investors be concerned for the company’s reputation?

JNJ ( Johnson & Johnson, $133.10) stocks tumbled down 10% Friday 14th, 2018 as the company has been handling their pressures of the public knowing of asbestos in it’s baby powder. Some investors are concerned for how the issue is going to be managed and if this will effect their next earnings report. Yet, other investros aren’t concerned sicn the company is vastly know for their award-winnning products and their loyalty to their customers. However, this is not the first time JNJ has been hit with public shame for asbestos this year.

July 12th, 2018, JNJ (Johnson & Johnson, $125.89), is hot on the news for their case of being sued by 22 women for receiving cancer and /or poisoning for asbestos found in their famous talc baby powder. But should JNJ be shamed for this? Does this make JNJ a bad company?

According to mesothelioma.com, Trelomite, also known as amphibole asbestos, is created in the same nature as talc. Tremolite is often found in the same mines as talc and without special quality testing, it can contaminate the talc. However, talc can not only be used in baby powder but chewing gum, oils, makeup cosmetics, hair products, and more.

Read: Tariffs: What Are They? How Are They Affecting My Portfolio?

JNJ’s lead attorney, Bart Williams had more to say today on the issue,

Johnson & Johnson doesn’t believe it should be intimidated into removing a product that’s been out over 100 years, that has diapered hundreds of millions of babies around the world, simply because plaintiff lawyers have put a target on the back of Johnson & Johnson.We believe in the product. The product works. The product is beloved. The best scientists in America have reviewed it again and again.



Does this event make JNJ a bad company? Investors and customers still believe in the company and await its next press release.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attained:

CNBC.com, Mesothelioma.com, Factsabouttalc.com

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Tariffs: What Are They? How Are They Affecting My Portfolio?

What are tariffs? How do they affect the stock market and investors?

It’s important to get a simple understanding of how tariffs are affecting the stock market and our economy. Tariffs are hurting many stock investors and it’s important to get an understanding of what they are doing.

A Tariff is a tax or duty to be paid on a particular class of imports or exports.

Simply put, a tariff is a tax on an import/export. When the money is collected they are known as duties or levies. Tariffs are usually charged as a percentage of a “transaction price”. These percentages vary from country to country. Analysis done by Greg Daco of Oxford University, discovered U.S., Japan, Europe and Canada charge a tariff percentage of 3.1% and below whereas Mexico and China reach to 4%.

Read: How Entrepreneurs Can stay Ahead Of A Slow Growing Economy.

Tariffs raise our government revenue and decrease pressure on our competitors. However, U.S. and China are two of world’s two largest economies and economists are declaring that China can stand to “hold their breath longer” in the trade-off than America.

The biggest concern lies with our fragile economy and corporate businesses. The “tax war” is effecting some of America’s most important businesses; soybeans farms, automobile manufacturers, steel and aluminum shipments, etc.

Rod Sides of Deloitte (U.S.) recently stated,

Consumers are feeling good, but if they see prices start going up, there could be a backlash. The average consumer hasn’t yet internalized what the tariffs mean to them and haven’t seen the prices rise.

Read: Bearish Behavior: How To React When Your Portfolio Is Plunging.

The tariffs can contribute to price changes of imports/exports which may contribute to the delay of corporate investments and new projects. This has investors concerned for price changes on the stock markets and America’s wealth. The tariffs don’t only effect our portfolios as investors, but this also affects the global economy. The world is watching every move President Trump makes and how he responds to China. The pressure is on.

Please see About Me and Disclaimer for additional information about Black Tea.

Information Attained:

Finance.Yahoo.com, InvestingAnswers.com, CBSNews.com

Why You Need To Keep Reading SEC Filings

SEC stands for Security Exchange Commission, it’s a place where most businesses submit company reports; 10-Ks, 8-Ks, S-1 forums, and etc. It’s often you will find companies praising about the revenue they made in their recent quarter or profits gained from a particular project, but it’s crucial to know the companies overall progress on their balance sheet.

Is the company showing consistency? Are they keeping profits high and production costs low? Are they truthful about their paid taxes? You can find all of this information on the SEC.gov.

Though earnings calls have their own matter of importance, viewing reports on the SEC will give you accurate information you can copy and save for later. You may also find additional background information on the CEO of the company (criminal record or education) on the Schedule 13D forum. Catch up and read our recent post about Investing Secrets here.

 

Investors also visit SEC.gov to view S-1 forums for additional information on IPOs. Don’t invest based on what your friends told you, visit the main source and find out for yourself. Though companies hold their own annual/quarterly statements, these reports can be very “colorful” and have a picture perfect outlook on in future they are expecting. It’s important to read the SEC filings because it will keep you knowledgeable about your investments and the long-term potential the company holds.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Obtained: Investopedia.com, SEC.gov, Fool.com

Stock Investing 101: What Are Robo-Advisers?

Robo-Advisers have become increasingly popular and many investors enjoy the features that come along with the investing program. Let’s get a quick view of what they are, how they work, and how they may work for you.

According to Investopedia, robo-advisers are “digital platforms that provide automated algorithm-driven financial planning services with little to no human supervision“. Simply put, it’s a digital financial planning service that manages your account for you- who needs people anyway? Read one of my most recent posts about tech stocks here.

Pros of Robo-Advisers

Robo-Advisers are known for their award-winning software for their algorithm techniques, simplicity, low costs and fees. They offer more affordable fees than human financial advisors and most companies provide 24/7 customer service hours. Annual fees may be as low as 0.2%, whereas fees for “human” managed portfolios have a flat annual fee for 2%. That may not sound like a lot, but a little goes a long way over a period of time.

Cons of Robo-Advisers

There are many advantages advertised for robo-advisors, however, they require online access to operate. If you enjoy day trading, swing trading or options, you more than likely won’t get all of the technical features that come with active trading. Robo-Adviser programs are aimed towards buy-and-hold investors and have their own set of hourly rates/fees involved with the program.

There are many robo-adviser programs that leave investors very satisfied. Two of the most popular companies you may be familiar with are Betterment and Acorns. Robo-Advisers are great and if your interested in opening an account, contrast and compare from other companies and do your own research on what you’re looking for in your investment portfolio.

Please see About Me & Disclaimer for additional information about Black Tea.

What about ARLP (Alliance Resource Partners LP)?

ARLP (Alliance Resource Partners LP, $18.00) is amongst the nations leading coal mining corporations in America. If your into the coal/ Basic Materials sector, you may want to look into ARLP.

Investors and analysts have notice their increase in volume.

Due to the recent Tax Cuts and Jobs Act, coal workers have received a substantial tax relief and ARLP plans to reopen a min in Gibson County, Indiana previously closed in late 2014, employed 417 miners.

Though their cashflow fell in 2017 to 20.96%, their GPM (gross profit margin) has remained steady ranging from 40% to 36% (since 2014).

(Screenshot from MSN.com/money)

While many investors compare ARLP to other corporations such as CSUAY (China Shenhua Energy LTD, $10.30) or CLNDY (Coal India LTD), the recent demand for coal overseas will provide more customers and higher revenue. American coal corporations see this as an opportunity to stop the “yearlong drop” in their production. Though investors are wary of their dramatic price drop in (2015, $50.21), analysts see ARLP as a buy and investors are looking to buy closer to their 52-week low at $15.55.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Obtained: WSJ.com, EIA.gov, and Marketwatch.com

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Top Driverless Car Stocks

Well, I hope you’re ready for this because it’s happening and driverless are the future- I suppose this will give us the liberty to “text & drive” again.

A particular company that caught my eye is Waymo, a company owned by GOOGL or GOOG (Alphabet$1,155.18), same company, different voting rights. Besides their corny advertisements of family safety, Waymo started their studies in 2009 and has reached over 4 million self-driven miles from their vehicles on public roads.

Photo of Waymo’s popular Christlyer model.

Alphabet holds some of the world’s leading technology, shareholders are mindful of their decrease in R&D costs from 34% to 30% (2014 to 2017)- very impressive.

You can find out more information on their driving history and models at Waymo.com.

But GOOGL isn’t the only company with all of the cool technology, according to Motley Fool, INTC (Intel, $51.12) swiftly bought Mobileye for $15.7 billion in 2017. Mobileye was once partnered with TSLA (Tesla, $331.00), but now TSLA is now operating their own driverless technology (and we see how that’s been working out for them).

In early June 2018, Telsa recently caught on fire on its own. Poor Tesla.

Will these costs be affected in the future? Investors are looking for properly managed financial statements and adequate company acquisitions/mergers to keep these companies ahead. It’s a fact that driverless cars are the future, but who will be the largest and leading operator of this technology?

Please see About Me & Disclaimer for additional information about Black Tea.

Information Obtained: Waymo.com, Fool.com, and Wikipedia.com.

The Christian Investor: Trust Issues

There is a time to make a move and there is a time to sit back and let God handle it all, but how to do we define the two?

God is protecting us from things we cannot see.

As said in Ecclesiastes 3:11, ” He has made everything beautiful in its time. He has also set eternity in the human heart, yet no one can fathom what God has done from beginning to end. And when He calls us to sit back and not move, God is protecting us from things we cannot see. And if you don’t know when God is telling you to trust him, ask Him! This understanding requires you to read more of his the bible for you to understand what he is speaking to you.

God has higher thinking than we do.

Besides, you may not be mentally or emotionally prepared for what “looks” like an exciting opportunity. If you trust God in handling the small things, you must trust him in the big things too. We have to lean on his understanding, for God’s has higher thinking than we do. He can turn a bad situation into good in a matter of seconds, but if you cannot trust with the gift he has given you how can he help you?

Those who know your name trust in you, for you, Lord, Have never forsaken those who seek you. – Psalm 9:10

This week, ask God how you can trust him in every area of your life. Ask him to not only to help you when problems arise but to help you when things are going well. God will help us in the good times and bad, but our trust issues can stand in the way. Ponder on this scripture this week:

Trust in the Lord with all your heart and lean not on your own understanding; in all your ways submit to him, and he will make your paths straight. – Proverbs 3: 5-6

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