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.

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

Information Attained:

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

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Ford: Driving Back to Fourtune?

F (Ford $11.71) has made great company changes in order to sustain in the automotive industry. With a growing revenue of only 3.28% from 2017, many investors have mixed feelings about the business operation.

In this time in the automotive industry, there is a high demand for sport-utility and pickup truck vehicles. From F discontinuing their sedan models, they are projecting a lucrative return for this year and the year of 2019.

With a forgiving dividend history of $0.15 per share (since 2014), they have a very low GPR (Gross Profit Revenue) of 16% and spend almost half of their revenue in SGA costs. F‘s financial track record could be better (in my humble opinion), yet many investors are considering the stock a buy at its low price. But is it worth the investment?

Their $11 million dollar free cash flow has given the company little room to work with reinvestments. Investors hold the company accountable for their bright outlook on the next 5 years to come.

Cheap Stocks

I get it. Our economy is awful, we can barely hold a $1,000 emergency fund and investors have transferred from value investing to looking for something that will have our “bang for our buck” kind of deal. However, just because a stock is “cheap” doesn’t mean that is it necessarily a good buy. It may be best to hold on to your savings for the more expensive index funds stead of buying the penny stock.

Stop trying to get rich quick from the stock market, It won’t work in your favor.

There are many stocks you can find under $5 dollars, but keep in mind that the lower the dollar, the higher the volatility. Investors who ignore the company’s financials and selling product, only care about how much money they can make. Stop trying to get rich quick from the stock market, It won’t work in your favor.

Besides the fact you feel special holding 1,000 shares of a stock that can cost a little as $0.0032, what value does the company hold long-term? Wealthy investors don’t care about the price of the stock, they care about consistency. What is the company competitive advantage? What are their competitors and the amount of money they spend on research and development?

May I encourage you to look deeper into every company you are investing in. Your due diligence is the only way that makes each investment the right investment. Every investor is responsible for his or her gains and loses, so choose wisely.

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App Review: Stash

Let’s talk about one of the newest innovative investing apps, Stash.

Stash is a great micro-savings app that let’s you start investing will as little as $5. With visual categories, it gives you a vivid selection of sectors you may want or like to invest in- ETFs named with “roll with buffett” or “small and mighty”.

Stash encourages the new investor to save their money into the account by promoting an option for weekly or monthly deposits. Stash will charge 0.25% to the account for those who have balances over $5,000. For accounts under $5,000, there is a $1 charge ($2 for retirement accounts).

I would reccomend Stash for the new investor- college student, single mom or anyone who wants to start but dosen’t have the time to learn about the market. Stash is very simple and easy to use, try it for yourself.

Stash is avalible to download and Apple and Android devices.

Tinder App’s New Competition: Facebook Dating

On Wednesday, May 2nd, 2018, CEO, Mark Zuckerberg announced Facebook’s new feature they will be presenting to their customers, Facebook dating.

This was announced at Facebook’s annual conference on Wednesday, but is this a good choice to make after Facebook’s recent federal court trials from the massive data breach? It was said that, “Facebook wants to help its user change their statuses from single to a relationship”. Though some investors disagree with the new feature, others are overzealous with the new add-on to service one of the world’s largest social media platforms.

Facebook wants to help its user change their statuses from single to relationship

The dating profile can be separated from the individual’s personal Facebook account, also giving the option to have the dating account to remain personal or private from his/her friends. CEO, Mark Zuckerberg, aware of the safety fears, boldly announced that this is meant to build more “meaningful, long-term relationships”. Though it’s not certain, Facebook may charge a fee to the users who want to subscribe to the new dating feature.

The online dating industry is worth at least $3 billion and as the FB (Facebook) stock surged to 2.18% after the conference, investors are excited for what is in store for this year. But on the other hand, can Facebook compete with the leading Tinder app that services? Tinder is not only nationwide, but internationally known. Tinder is operating in over 196 countries and avalible in over 40 languages. Is Facebook able to keep up with the Tinder app giant? As we all wait in anticipation, only time will tell.

Facebook will soon announce the immediate new features this summer.

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