Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (17973)	11/12/2003 12:24:30 AM
From: - with a K	Respond to of 78439

I took a starter position in JNJ at $48.99. Reasons: think most of the bad news is priced in; 1.96% yield with steady history of rising dividends; payout ratio of 40%; declining debt since 1999, now very low; rising net profit margins since 1998; history of EPS growth; recently saw a Stock Selection Guide (NAIC) with conservative estimates, and it was a "buy;" ugly chart but think there is some support around $48-$49. Company: JNJ Date: 11/11/03 2003's expected earnings: $2.64 Estimated EPS growth rate: 11 P/E maximum: 16 Graham Fair Value: $70.63 Current Price: $49.08 $ difference: $21.55 Percent Growth to Fair Value: 43.90%