Monday, January 17, 2011

Can Johnson & Johnson Get Its Act Together?

Here's a good New York Times article on the ongoing quality problems of Johnson & Johnson (JNJ).

From the article:

With such a diversity of products and operating companies, Johnson & Johnson's overall business has not suffered significantly. But the string of recent recalls at McNeil threatens to weaken the kind of trust that made many people willing to pay more for J.& J. brands.

2010 was a terrible year for the company. The longer these problems persist opens the door for competing brands, generics, and lost pricing power.

While still hugely profitable, just how permanent and material the damage to Johnson & Johnson's reputation and its trust with consumers isn't that easy to quantify.


Long position in Johnson & Johnson established at lower than recent market prices
This site does not provide investing recommendations as that comes down to individual circumstances. Instead, it is for generalized informational, educational, and entertainment purposes. Visitors should always do their own research and consult, as needed, with a financial adviser that's familiar with the individual circumstances before making any investment decisions. Bottom line: The opinions found here should never be considered specific individualized investment advice and never a recommendation to buy or sell anything.