Enterprising Investor Forum

Take a look at JNJ Monday, February 9, 2009

Following on from our recent post on Sasol, we are now moving to a company in the healthcare Sector.

Johnson & Johnson (JNJ) is engaged in the research and development, manufacturing and sale of a range of products in the healthcare field. Johnson & Johnson has more than 250 operating companies and operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics.

Despite recent performance, especially the slower growth, JNJ still presents the chance to own one of the best blue chip companies in the market and a company that has been shaping the healthcare system for over 120 years. As you are well aware, consolidation has already started in this sector and we are sure that JNJ is going to play an important role in this upcoming restructuring wave and that the robust balance sheet and strong cash flows will mean that they will be in an ideal position to take advantage of the best opportunities that come along.

We feel that JNJ is worth studying as a long-term play for any portfolio. JNJ is a blue chip company that:

• Operates in one of the fastest growing sectors in the global economy.
• Has great balance sheet with a track record of strong performance and healthy dividends.
• Is trading at a very reasonable multiple.
• Presents reduced risk – a conservative play – in current market conditions.
• Will benefit and play and active role in the healthcare sector consolidation.

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