JNJ

Notable Insider Buying Week Ending 12-20-19

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CB Duncan continues to amass sizable buys of Enterprise Products Partners, LP.  This midstream oil and gas operator  yields 6.29%. This seems like a buy in a low yield world but bear in mind, several MLPs  in this space yield double digits and have sizable insider buying as well. If you believe the combustion engine will be replaced by EVs in the next 10 years, don’t buy these MLPs. I for one don’t believe the market appreciates the complexity and cost of making lithium batteries. A director bought $1.28 million of peer Energy Transfer Partners at $12.79 per share, yielding … Read more

Wright Medical $WMGI jumps after Bloomberg Says Exploring Potential Sale

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Wright Medical Group (WMGI) is working with financial advisers to explore a sale, Nabila Ahmed and Ed Hammond of Bloomberg reported last night, citing people familiar with the matter. The ankle joint implant maker rose 11% in after-hours trading Friday night to $24.45. The company has made no final decision and could still opt against a potential sale, sources told Bloomberg. Potential acquirers in the space include Stryker (SYK), Johnson & Johnson (JNJ) and Smith & Nephew (SNN), Ahmed and Hammond reported. I was reviewing our portfolio holdings after the market close on Friday, (embarrassingly counting the money on a … Read more

Warning Insider Earnings Plays Can Be Hazardous to your Health Week 10-18-19

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WARNING- BUYING STOCKS BEFORE EARNINGS ANNOUNCEMENTS CAN BE ESPECIALLY RISKY. Stocks have outsized moves on earnings. We analyze these companies carefully where large insider buys might provide some insight. Insiders sell stock for many reasons, but they generally buy for just one – to make money. THE INSIDERS FUND invests in companies at or near prices that management has been willing to invest significant amounts of their own money in.  After all, who knows a business better than the people running it?  You’ve always heard the best information is inside information.  This is as close to “insider information” that an … Read more

U.S. Drug Spending Increases Most in 13 Years to $373.9 Billion – Bloomberg Business

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Often times it seems that the news, particularly economic news is out of step with the price action in the stock market.  This headline is not. No wonder healthcare is the best performing sector in the market and likely to continue to outperform with the huge demographic tailwinds behind it. U.S. spending on prescription drugs saw the largest increase since 2001, with the nation’s pharmacy bill rising to $373.9 billion last year as new treatments came to market and manufacturers increased prices on old ones.“Last year’s $43 billion growth in spending on medicines was the highest ever,” said Murray Aitken, … Read more

JNJ goes ex dividend 8-24

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I expect JNJ to bounce off its 50 day MA at $67.78 as it approaches it’s ex dividend date on August 24th.  If you plan on holding beyond the next few days, the DePuy hip replacement settlements seem to be factored into the current price.  With it’s out-sized dividend and a sizable discount to its net present value, this may be an opportune time to build a position in this high yielding blue chip. The caveat though is if it doesn’t bounce here, there’s a lot of daylight below.

Blue Chip Is The New Alpha – Seeking Alpha

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We loved this provocative article from Seeking Alpha, especially the quote from Alexander Graham Bell.  We may be biased though as we are also long JPM,K,MSFT, INTC, MCD, PG and BP and the author, Stephen Perry, is interning for us this summer. Blue Chip Is The New AlphaJuly 30, 2012  | 3 comments  |  includes: AAPL, ABT, CL, CVX, DD, GE, IBM, JNJ, JPM, KO, MCD, MDT, MMM, MRK, MSFT, PEP, PFE, PG, T, TGT, VZ, WFC, WMT, XOMIts been difficult to find alpha in a market that is so volatile and dependent on global macro events, but I think Ive … Read more