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Strategies & Market Trends : Value Investing

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From: Paul Senior1/25/2011 1:11:50 PM
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JNJ:

From p.r.: "2010 Full-Year EPS was $4.76, an Increase of 2.8%"

"The Company announced earnings guidance for full-year 2011 of $4.80 to $4.90 per share, which excludes the impact of special items."

With this kind of earnings growth, and earnings maybe expected not even $5 per share and a stock price a bit above $61 today, I'd say 12x earnings is about my idea of fair value.

Inflection point for me with stock down today (on this earnings report release): either sell or buy more. I say sell, better opportunities elsewhere. So I'm out, at least for now.

finance.yahoo.com
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