Johnson & Johnson is a manufacturer of health care products serving the consumer, pharmaceutical & professionalmarkets. For the 9 months ended 9/00, revenues rose 7% to $22.03B. Net income increased 15% to $3.91B. Revenues reflect continued strength in the skin care franchise, and increased worldwide pharmaceutical sales. Earnings also reflect decreased selling, marketing and administrative expenses as a percentage of sales and lower interest costs.

December 26, 2000

Johnson & Johnson provides a wide variety of products in the health care field. The company manufactures and sells consumer, pharmaceutical, and professional health care products such as first-aid products, anti-infective medicine, contraceptives, mechanical wound closure products, surgical equipment, joint replacements, and disposable contact lenses. The stock is a classic safety play. Shares of JNJ hit a 52-week low of $66.13 on March 7th as the NASDAQ traded to record highs. Since then, JNJ has steadily risen while the NASDAQ struggles to find a bottom. Currently, JNJ is sitting just below its 52-week high of $103 and we believe that the stock could be ready to break out. We are also looking for a split announcement to come with their next earnings release on January 17th or at their next BoD. JNJ announced their last split out of a BoD meeting when the stock was trading under the century mark. Going forward, support is the 5-dma at $100.94 with stronger support at $99.69, the 10-dma. JNJ has resistance at the November 30th intra-day high of $103 and then the 11/18/99 intra-day high of $105. Traders may consider entry points on a bounce off of $100.94 or a breakout above $103 on volume greater than 1.6 million shares by midday. We plan to use stops at $97.75 to limit potential losses.

Picked on December 27th @ $102.38
Change since picked +0.00
Stop Loss @ $97.75

January 4, 2001

Johnson & Johnson was hit with profit taking on Wednesday, as The Federal Reserve attempts to fight off a recession. The stock traded down to an intra-day low of $97.88 on heavy volume of 5.66 million shares. We were stopped out at $101, so we are dropping this play tonight.

Picked on December 26th @ $102.38
Profit/Loss = –1.38 (-1%) (Stopped out Wednesday @ $101.00)
Best Profit = +3.56 (+3%)

January 3, 2001

Hit stop, write up to follow.

January 2, 2001

Johnson & Johnson, a leading provider of consumer and professional health care products, started the New Year in negative territory after hitting three consecutive 52-week highs last week. The stock fell to an intra-day low of $101.56 on volume of 4.01 million shares. However, we are not overly concerned because JNJ was due for a pullback and it did manage to close above the 10-dma, keeping the upward trend alive. Hopefully, the stock will be able to bounce as we move into earnings season. In the meantime, support is the 10-dma at $101.81 with additional support at the December 26th intra-day low of $101.38. Resistance is the 5-dma at $103.44 and then Friday’s intra-day high of $105.94. Traders should be looking for entry points on a bounce off of $101.81 or a breakout above $103.44 on volume of at least 1.6 million shares by midday. Our stops remain at $101.

Picked on December 26th @ $102.38
Change since picked –0.38
Stop Loss @ $101.00

December 31, 2000

Johnson & Johnson is a leading manufacturer of consumer, pharmaceutical & professional health care products. The stock hit its third consecutive 52-week high on Friday. Shares of JNJ traded up to $105.94 before running into resistance late in the session. The stock continues to trend higher as investors move money out of tech and into safety in front of a weak earnings season. We are looking for a split from JNJ with their next earnings release on January 17th or at their next BoD. JNJ announced their last split out of a BoD meeting when the stock was trading for less than $100. For now, the stock has support at Friday’s intra-day low of $104.50 with stronger support at $103.31, the 5-dma. Resistance has moved up to Friday’s intra-day high of $105.94 and then the all-time high of $106.88. A bounce off of $104.50 or a breakout above $106 on midday volume greater than 1.6 million shares may be possible entry points. We have bumped our stops up to $101 to limit potential losses.

Picked on December 26th @ $102.38
Change since picked +2.69
Stop Loss @ $101.00