Sold half my JNJ position. The company keeps increasing its dividend (although it's only 3% now), keeps growing (bv, etc.) has great returns on equity, and is owned by Mr. Buffett.
My current shares I show were first purchased in early '06 at $57-58 area. Stock now $65. For such an apparently great company, this stock really hasn't performed so well in past four years. (For me. Although disappointing small gains over four years are better than losses in other companies' stocks of which I have many over those years.)
I suspect that if earnings/growth continues, the stock will eventually move much higher. I also suspect that with JNJ now having apparently botched a "smelly" drug problem and with its additional problem of gov't accusations of bribery, that the stock, now at a new 12-mo. high, might be stymied for a while. If the stock cycles, I could yet again see an opportunity to reenter, maybe back at my '06 prices or lower ('09 prices).
I'll take that chance with a sell of 1/2 my position. And meanwhile try to use funds raised for more aggressive capital gains and dividend yields elsewhere.
Pharma/healthcare on the move early today with several stocks showing full point and more, gains. On the one hand, perhaps an opportune time to exit (JNJ); otoh maybe it's the start of an increase in market's perception and interest in health care. |
