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November 15, 2005

Follow up to Nov-02 JNJ Buy", Tues., Nov. 15, 2005, 11:10 AM

So JNJ agrees to buy Guidant in a new deal that is about $4 billion superior to the one struck in December. What's a B here or there?

Anyway, JNJ needs Guidant to boost future sales and earnings growth. It's a good deal, made by a solid management team.

It was only November 2 that I issued my Buy JNJ" opinion. I have written about this company often, as it is on the Cara Global Best 100 Companies list.

I think my Nov-02 JNJ Buy" opinion is working out o.k. Maybe you agree.

On August 29, I pointed out in a separate article that JNJ was one of 10 high quality Dow 30 components that are on the Cara Global Best 100 list. I advised buying them on weakness, which I described how to do. You will see that JNJ fit that description in early November, causing me to issue a Buy" opinion.

You will also see in that August 29 article that I pointed out that there was one Dow 30 component, Wal-Mart, that I was accumulating at the time. As you can see from the chart, WMT was $45 that day.

So there is the latest WMT price chart. You can see that through September into October, when Wal-Mart was being bad-mouthed by Wall Street, Cramer and the kitchen plumber, you could have bought WMT for between 43 (actually lower) and 45. Today less than 60-75 days later, you could have sold it at $49. That was an easy 10+ pct in 2 to 3 months.

I love it when a plan comes together, and that you are starting to get the picture that Bill Cara doesn't talk rocket science, or mumbo-jumbo " just common sense and a way to manage your own portfolio without the help" of so-called advisors.

But there is another important reason why I blog like this; I want readers who do have good reason to use an advisor, especially those who have found a good one, to be able to discuss these ideas with that person. After all, the more you know, the more likely you are going to have a successful communication with others.

Posted by Posted by Bill Cara on November 15, 2005 11:10:34 AM | Category: U.S. Dow 30

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