GE and Johnson & Johnson -- just timing
Yesterday when I posted Why complain about GE and not JNJ -- a puzzle? I got my answer. Investors do have patience, but it's limited. They will wait three years for positive results, but maybe not five, and ten -- forget about it! As you can see from yesterdays' chart comparing three-year performance, there is no difference and in both cases the stocks are down. The difference is nobody is demanding that heads should roll at Johnson & Johnson (NYSE: JNJ) while they are at General Electric Company (NYSE: GE)....
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Showing posts with label JNJ. Show all posts
Showing posts with label JNJ. Show all posts
Friday, February 15, 2008
BloggingStocks: Why complain about GE and not JNJ -- a puzzle?
Why complain about GE and not JNJ -- a puzzle?
I have been following General Electric Company (NYSE: GE) and Johnson & Johnson (NYSE: JNJ) for many years. This is probably very common among investors since both are broadly held, very large-cap stocks. Both companies have illustrious histories, strong management, and have been very rewarding to investors over the years -- but not the past few years!
Both stocks seem undervalued to me and I have been thinking about buying some shares. I own some JNJ already and might want to own GE if I can get it at a deep discount. This got me thinking about another issue. Investors have been expressing their frustration with GE's lack of appreciation over the last few years and some have gone as far as to call for the split up of the company and/or the resignation of CEO Jeffrey Immelt. For some reason Johnson and Johnson has not suffered the same fate. However, when you look at the following chart that shows three year stock performance you will notice great similarity.
read more...
I have been following General Electric Company (NYSE: GE) and Johnson & Johnson (NYSE: JNJ) for many years. This is probably very common among investors since both are broadly held, very large-cap stocks. Both companies have illustrious histories, strong management, and have been very rewarding to investors over the years -- but not the past few years!
Both stocks seem undervalued to me and I have been thinking about buying some shares. I own some JNJ already and might want to own GE if I can get it at a deep discount. This got me thinking about another issue. Investors have been expressing their frustration with GE's lack of appreciation over the last few years and some have gone as far as to call for the split up of the company and/or the resignation of CEO Jeffrey Immelt. For some reason Johnson and Johnson has not suffered the same fate. However, when you look at the following chart that shows three year stock performance you will notice great similarity.
read more...
