9. Johnson & Johnson Breaks Into Three Companies
Too much risk? Well how about a lower-risk play that could produce a very quick 20% return with the stroke of a pen, the break-up of the venerable Johnson & Johnson (JNJ - Get Report) into three companies, consumer products, medical devices, and fast-growing pharma business. This triple A balance sheeted company has been put together in unwieldy and non-performing fashion by William Weldon, one of the weakest CEOs I have ever come across, and yet totally lionized by Wall Street. Get me his P.R. man!
Weldon's been replaced by Alex Gorsky who is not wedded to a business that includes, Band-Aid, artificial body parts and cancer drugs. Abbott Labs (ABT), on its announcement of a similar spin increased by 20% before recently pulling back on a failed new drug. But Bristol-Myers (BMY) with its spin-off of Mead Johnson (MJN) and Covidien (COV) with its drug and device spin have far outperformed the drug stock cohort and the averages. Look for this stodgy company to pick up 20% with the stroke of the break-up pen.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV