Johnson & Johnson: Damaged Forever?

Things aren’t looking good for Johnson and Johnson. What can we expect next?

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  • 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 investors aren’t concerned since the company is vastly know for their award-winnning products and their loyalty to their customers. However, this is not the first time they been hit with public shame for asbestos this year.

What Happened?

 

July 12th, 2018, JNJ was also hot in the news for 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 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.

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Information Attained:

CNBC.com, Mesothelioma.com, Factsabouttalc.com, Cnn.com

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Stock Investing 101: Bought My First Security, Now what?

So you just started investing and you purchased your first security, now what?

Whether you’re using an investing app or you opened a brokerage fund account, congratulations! It takes courage to start investing in the stock market and it may often feel lonely. Here a few things you need to understand now that you are a stock investor.

Knowledge is Power

Intelligent investors always keep up political and business news. This is necessary because the news will help you keep up with company announcements, or when to buy or sell. Now, you don’t have to read the newspaper every morning for breakfast like your grandpa does (though that’s not a bad idea either), but this may be as simple as subscribing to a few business apps such as Bloomberg, WSJ ( Wall Street Journal), or Market Watch. Take a few minutes every morning to read about recent earnings reports or business updates on the companies you’re invested in.

Emotional Rollercoaster

Depending on your investing style, DO NOT let the fluctuating prices changes keep you up at night. Many investors understand to not place all of their life savings into the stocks market. It’s crucial to have a separate emergency savings account and investments to hold long-term. This will give you financial stability in your personal finances because that’s what you want, right?

Always keep in mind that when you invest in the stock market, you need to research and view your investment as if your buying a business. However, if you lose money on a bad investment, step back and recreate a strategy that will work for your investing style.

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