JNJ is about to release earnings. Ponder this Bear Case Scenario.
JNJ has mainly speciality drugs which do not have a huge patent expiration risk. On the other hand they have narrow niches and are not contributing to EPS in a major way.
Recall and legal action always have the risk of distracting management from the future as they are stuck in the muck of yesterday. Watch for management changes as responsibilities change. Some will fight rear guard actions some will forge ahead.
George Gutowski writes from a caveat emptor perspective.