DOJ targeting Johnson & Johnson, can health care stocks recover?

DOJ targeting Johnson & Johnson, can health care stocks recover?



big buzzkill today for Johnson & Johnson falling 4% after the Justice Department revealed it was pursuing a criminal investigation into the company for possibly lying about the cancer risks associated with its talcum powder the stock dragging down the rest of the healthcare space today capping off an eventful week where Trump also pulled a key proposal aimed at eliminating rebates for drugs health care is still the worst performing sector this year but could things get even worse for this group damn you know it's funny we were just talking about Facebook we're just talking about FTC settlement and it's kind of really hard to know when things are out of the way I think Johnson and Johnson a really good example back in December when that stock was at an all-time high and flushed on when these news of this start started happening it's really kept a lid on this stock this is the 350 billion dollar market cap company and I think it's really important remember that stocks do have single stock risk you know right now I think we are pretty complacent thinking about the ESPY going to all-time highs but Tim you flagged it last night with some of these pharma names you had Lilly at a level yeah I think you said 110 it was 105 this morning on the opening you know so some of these groups that don't have a lot of support right now underperforming the market I think there's risk to them well when Johnson and Johnson had that flush again it was also another one of those surprises that the market wasn't expecting this is a period when actually markets didn't need another stalwart and and certainly a backstop stock to fall out of bed I do think this about Johnson & Johnson relative to its peers and relative to the multiple that they get on their farm of business effectively I think it trades quite cheap and I think they have more growth than their peers I think when you look at the diversification of this conglomerate there's there's other places for these guys to mitigate this I ultimately I think you have an opportunity here you don't have it today it's clear that there's still you know you know a lot of regulatory risk but this this company is again one of the Best of Breed and I I don't think you run terribly far there's very few things that are bipartisan today in in Congress in in DC bipartisan is the hate for health care and anything about it so you enjoyed the segment with its underperform where do you go biotech is underperform HMOs have underperform the rebate chase all these names have underperformed I think you stay away from him July 16th which I believe is Monday or is it Tuesday that's when Johnson Johnson reports and Dan is looking at a chart because I've eagle eyes and I was very good at looking over my my partner's shoulder and the school we were going to get answers and that 148 level that Dan's looking at was a high back in January of 18 December of 2019 major double tops they report this stock probably has that 124 level which had bottomed out June of this year right in the crosshairs you you you

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