Johnson and Johnson are trying to revive their attempts to get the US supreme court to resolve tens of thousands of lawsuits over its talcum powder products through the bankruptcy of a subsidiary company.
This ongoing dispute concerns allegations of contamination in J&J’s talc product, which J&J denies. If J&J manage to succeed with this attempt then this could offer significant upside to J&J. However, critics view J&J’s attempt here as an ‘attempted abuse of the bankruptcy system’.
This was according to Leigh O’Dell one of the lead attorneys for the plaintiffs in the lawsuit. J&J discontinued its talcum powder product worldwide this year over what it calls mis-information.
Seasonals are certainly strong for Johnson and Johnson and could offer upside regardless of the ongoing court decision. With a portfolio of health care products the health care sector is historically resilient during any potential recession.
Over the last 15 years between March 24 and May 15 Johnson and Johnson shares have risen by an average of over 25%. The winning percentage is also 80% and the maximum drawdown is nearly 4%
So, is Johnson and Johnson worth buying into this year?
Major Trade Risks:
The major trade risk here is that further law suits weigh on J&J’s share prices
Remember, don’t just trade it, but Seasonax it!