Pharma Getting Hit

Pharma is getting hit today on the back of bad earnings from Johnson & Johnson (JNJ). I am using the weakness to add to my Eli Lilly position.

4 comments:

Anonymous said...

I don't consider the JNJ news to be bad at all. They hardly took a hit and they are still forecasting their yearly earnings to beat expectations dawg.

Still I mkt needs to bounce for me I will I have to consider hitting out my long.

All else considered, as long as we maintain this range, we are gonna be basing to shoot higher imo given we are in the thick of earnings.

Unless today's action proves me otherwise, I maintain the baseline assertion we are headed up.

Tsachy Mishal said...

I barely view JNJ as a pharmaceutical company. They are a diversified healthcare and consumer products company and have not been investing in their pharmaceutical division. A lot of healthcare managers hide in JNJ because it is up over the past decade unlike other pharma stocks. If other pharmaceutical companies report good quarters they could see some JNJ money flow their way.


That is the reason I view the bad JNJ news as an opportunity. Am bearish on the overall market so I just nibbled.

Anonymous said...

No doubt, they make a lot of band aids, baby lotion, lubricant, contact lenses and stuff. I dont' think they make any kinds of prescription medication, but I could be wrong. Anyways, they are a brand name maker of healthcare products and they have plenty of competition from no name companies. They are like the IBM of the health care products world imo. A bellweather

Tsachy Mishal said...

They have a pharma division. Thats where the revenue miss came from.