Dueling Fools: Johnson & Johnson Bear Rebuttal

By Billy Fisher | More Articles
October 12, 2007 | Comments (0)

Like my fellow sparring partner, Ryan Fuhrmann, I also consider myself to be a contrarian investor. So I can definitely respect those who've taken a somewhat contrarian approach by buying the down-and-out shares of Pfizer (NYSE: PFE ) or Johnson & Johnson (NYSE: JNJ ) . However, little or nothing I've heard has convinced me that either of these stocks would be a good investment now.

Ryan makes a good point: Johnson & Johnson is well-diversified, and thus better-protected against downturns (in the stent market, for instance) than a smaller, less-diversified name like Boston Scientific (NYSE: BSX ) . That said, J&J's massive size and diverse operations make the needle that much tougher to move. Strong results in any one of J&J's business lines would have little effect on its stock.

Don't get me wrong: J&J is a good company. I just happened to peg it as a future underperformer.

Check out the other arguments in this duel, and then vote for a winner.

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