Johnson and Johnson upside? [Video]
|Johnson and Johnson are trying to revive its attempts to get the US supreme court to resolve tens of thousands of lawsuits over its talcum powder products through the bankruptcy of a subsidiary company. This ongoing dispute concerns allegations of contamination in J&J’s talc product, which J&J denies. If J&J manages to succeed with this attempt then this could offer a significant upside to J&J. However, critics view J&J’s attempt here as an ‘attempted abuse of the bankruptcy system’. This was according to Leigh O’Dell, one of the lead attorneys for the plaintiffs in the lawsuit. J&J discontinued its talcum powder product worldwide this year over what it calls misinformation.
Seasonals are certainly strong for Johnson and Johnson and could offer an upside regardless of the ongoing court decision. With a portfolio of healthcare products, the healthcare sector is historically resilient during any potential recession.
Over the last 15 years between March 24 and May 15 Johnson and Johnson shares have risen by an average of over 25%. The winning percentage is also 80% and the maximum drawdown is nearly 4%. So, is Johnson and Johnson worth buying into this year?
Major trade risks: The major trade risk here is that further lawsuits weigh on J&J’s share prices.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.