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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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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.

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Edible Earnings From DRI (Darden Restaurants Inc.)

DRI (Darden Restaurants Inc., $108.80) is a corporation that owns some of America’s famous restaurant chains: Olive Garden, Long Horn Steak House, Bahama Breeze, Cheddar’s Scratch Kitchen, The Capital Grill, Yard House, Eddie V’s, and Season’s 52 Grill.

Last Thursday, shares jumped 8.3% after their shareholders call, impressing investors by beating their earning goals; from $123.8 million (0.98 cents per share) to $174.5 million ($1.39 per share).

Carrying a fantastic history of consistent dividends, DRI has been steady in their lifetime on the stock market.

Image from StreetInsider.com

DRI also announced to increase their dividends by 19% for 0.75 cents per share. Many stock analysts are claiming this company to as a buy and hold investment. Current shareholders are very satisfied with their consistent dividend history since 2011.

Their Seasons 52 grill was the only restaurant that lagged behind by -1.39%.

Cheddar’s Scratch Kitchen was acquired last year by an all-cash offer for $780 million on March 27, 2017, some investors believe they could become more aggressive and competitive from their competitors BJRI (BJ’s Restaurant, $61.70) and DAVE (Famous Dave’s, $6.60). However, CEO, Gene Lee announced in DRI’s recent quarterly meeting,

“Our strategy remains unchanged, and our operators’ consistent focus on being brilliant with the basics has allowed us to continue building guest loyalty while taking market share.”

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

Information Obtained: DardenRestaurants.com/investorrelations, Streetinsider.com, Markets.Businessinsider.com

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