JBL: Banking on Financials' Earnings

Please Look Away

I believe Johnson & Johnson (JNJ Quote) is a good company. I also believe it wanted to buy Guidant (GDT Quote), the medical device company, to protect its share price. JNJ disappointed with its earnings this week. If JNJ had been successful in buying Guidant, then it could have pointed to its new growth engine to steer scrutiny away from current lackluster earnings performance.

Boston Scientific (BSX Quote) won the Guidant bidding war -- probably overpaying in doing so. I own Boston Scientific and still like it; however, the company just received a warning about quality from the Food and Drug Administration about six of its plants and its recent recalls.

After Friday's 6.57% decline, I think the worst is most likely priced in. I am holding on to my shares; however, I would not be a buyer here until we see how this is going to play out.

Remember, being poor is bad, staying that way is stupid.