Keeping Half of JNJ Top Purple Chip Position
Johnson & Johnson is a global household products company. The Company is engaged in the research and development, manufacture and sale of a range of products in the health care field. The Company has three business segments: Consumer, Pharmaceutical and Medical Devices. The Company’s facilities are located in the United States, Belgium, Brazil, Canada, China, France, Germany, India, Israel, Japan, the Netherlands, Singapore, Switzerland and the United Kingdom.
[PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'JNJ'" symbolprices="95" div_align="right"]
We bought JNJ in August at $91.12. Because this is a Top Purple Chip holding, we are retaining half of our original purchase as a core position and will add again on weakness. This is a modification to our strategy that should help to smooth overall performance since the Top Purple Chips are the best companies that an investor can own.
The Purple Chips 12 -18 month valuation range is: Low $89.00, High $99.00
EXITING HALF OF POSITION IN JOHNSON & JOHNSON AT $99.50 (JNJ-US) FULL POSITION
TOTAL RETURN: +9.2%
PURPLE CHIPS TARGET: $99.00 POSITION SIZE: FULL (5.0%) P/E: 15.5X DIV: $3.00 (3.0%) MKT CAP: $275B Cash: $5B RETURN ON CAPITAL: 36.9% EARNINGS YIELD: 7.1% 5 YR EPS Growth rate*:5.0% P/E/G Ratio: 3.3 EPS: $5.97 2016 EST.: $6.18 2017 EST.: $6.82
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
