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Johnson & Johnson faces multibillion opioids lawsuit that could upend big pharma...
https://www.theguardian.com/us-news/2019/jun/22/johnson-and-...
"...Day after day, the memos flashing across screens in an Oklahoma courtroom have jarred with the family-friendly public image of Johnson & Johnson, the pharmaceutical giant best known for baby powder and Band-Aid.

In one missive, a sales representative dismissed a doctor’s fears that patients might become addicted to the company’s opioid painkillers by telling him those who didn’t die probably wouldn’t get hooked. Another proposes targeting sales of the powerfully addictive drugs at those most at risk: men under 40.

As the state of Oklahoma’s multibillion-dollar lawsuit against Johnson & Johnson has unfolded over the past month, the company has struggled to explain marketing strategies its accusers say dangerously misrepresented the risk of opioid addiction to doctors, manipulated medical research, and helped drive an epidemic that has claimed 400,000 lives over the past two decades..."


JNJ is one of my bigger and longest-held positions and I've done very well from the decades-long buy-n-DRIP strategery - But...

But I have no compunction at all in having every person at JNJ involved in this opioid epidemic strung up and IV'd with their own products as street justice... whether that involvement was by commission or omission doesn't matter.


I'm beginning to think that the JNJ Credo is now just empty words much like the soaring rhetoric of "Respect, Integrity, Communication and Excellence" - which was the vision and values statement of... Enron.

I hope I'm wrong.

Duuude1
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No. of Recommendations: 0
I have been watching this issue from a distance myself (have not really done in depth study of what effect this may have on share price) and am struggling as to if I should lighten up on JNJ stock. Prominent place in portfolio.........
What are others views?
thanks
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I'm a very small investor since I can't afford much at any one time. That said I first got 50 JNJ in 2001 while I was still working. Sold 50 in 2011 and 10 in 2014. I still have almost 22 shares but have not div. reinvest for several years now. I know I will have to sell some stock when the property tax bill comes in and JNJ is on my list of which ones will help pay that bill.
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No. of Recommendations: 4
I have been watching this issue from a distance myself (have not really done in depth study of what effect this may have on share price) and am struggling as to if I should lighten up on JNJ stock. Prominent place in portfolio.........
What are others views?
thanks
-- soycapital

Let's see.....

...an ongoing series of lawsuits for asbestos and opioids. So far. Either type of problem could kill the company.

The tobacco companies avoided the bullet for years and apparently won from an investor standpoint. Maybe JNJ can dodge it too.

But IF I had JNJ, I'd realize that 90%+ of my portfolio is in tax sheltered accounts. And the decision would be easy. I would have sold as the asbestos thing came along and I would be in some other company with high potential. If I were a JNJ-type investor, I'd invest the proceeds in something like GOOG.

But GOOG has no dividend, you say?

So what?

They post increasing profits at a higher rate than JNJ is likely to ever see again. If you need the money, sell a few shares now and then. That's the strategy the BRK-B investors use. Invest in solid strong growth....without a dividend... and sell a few shares when necessary. As long as the company can invest the money otherwise wasted on dividends at a high rate of return, you're better off over the long run. Not convinced? For details, go to the public BRK-B board and ask how its done.

Rob
Rule Breaker / Market Pass / Supernova Navigator Home Fool & STMP/MTH Maintenance Coverage Fool
He is no fool who gives what he cannot keep to gain what he cannot lose.
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No. of Recommendations: 3
I suggest reading up on a little history. read about the Tylenol poisoning
cases in Chicago a while back. The situation was different admittedly - but
JNJ was remarkable. Management changes since 1982 are substantial - and views of
corporate responsibilities have changed.

However, you might get a more well-rounded opinion about JNJ as compared to the
opinions publicized during active law-suits against the company.

Howie52
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