{"id":535791,"date":"2010-04-20T16:55:00","date_gmt":"2010-04-20T20:55:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:425932"},"modified":"2010-04-20T16:55:00","modified_gmt":"2010-04-20T20:55:00","slug":"jj-offers-rare-margin-of-safety-in-current-market","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/535791","title":{"rendered":"J&amp;J offers rare margin of safety in current market"},"content":{"rendered":"<p><a href=\"http:\/\/www.financialpost.com\/markets\/company\/index.html?symbol=JNJ&amp;id=270227\" >Johnson &amp; Johnson<\/a> has underperformed the market in recent months and lowered its outlook for earnings on Tuesday, but it is still a value investor\u2019s best friend, according to Ockham Research (Hat tip: <a href=\"http:\/\/seekingalpha.com\/article\/199693-johnson-johnson-remains-a-value-investors-dream\" >Seeking Alpha<\/a>). <\/p>\n<p>Ockham recommends that disappointed investors view the numbers for the health care giant in context. For instance, J&amp;J is trading for about 12 times its cash earnings. Its price-to-sale ratio is only 2.8. Both those numbers are well below its averages over the past decade.<\/p>\n<p>Ockham thinks J&amp;J should be trading for at least US$73 a share, well above the current US$66.<\/p>\n<p>\u201cThat kind of margin of safety is difficult to find in the currently overheated market,\u201d says Ockham. <\/p>\n<p>It argues that, with a 3% dividend yield and the potential for double-digit gains, J&amp;J represents a fine roosting place for anyone nervous about today\u2019s market. <\/p>\n<p><i>Freelance business journalist <b>Ian McGugan<\/b> blogs for the Financial Post<\/i> <\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/network.nationalpost.com\/NP\/aggbug.aspx?PostID=425932\" width=\"1\" height=\"1\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Johnson &amp; Johnson has underperformed the market in recent months and lowered its outlook for earnings on Tuesday, but it is still a value investor\u2019s best friend, according to Ockham Research (Hat tip: Seeking Alpha). Ockham recommends that disappointed investors view the numbers for the health care giant in context. For instance, J&amp;J is trading [&hellip;]<\/p>\n","protected":false},"author":4059,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-535791","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/535791","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4059"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=535791"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/535791\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=535791"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=535791"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=535791"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}