"Johnson & Johnson (JNJ) is an international giant, employing more than 115,000 people and operating in 60 countries," notes Gavin Graham.

The contributing analyst to Internet Wealth Builder explains, "The conservative stock is in a great business in an almost recession-proof field. Indeed, we see this an opportunity to buy a world-class stock at a reasonable price.

"It is a major provider of prescription drugs, including Remicade for arthritis and Procrit for red blood cell production.

Johnson & Johnson (JNJ) has had its problems in recent times with recalls, but when you think about the stock, you can't help thinking that it's one of those blue-chip winners that will be around for a long time. It's a name that you can utilize a dollar-cost-averaging strategy with in an attempt to keep the cost basis at an attractive level.

Today, the health-care concern issued its third-quarter report. While the top line failed to do much, as this article indicates, the bottom line was able to top the analyst community's prediction. Net income came in at $1.23 per share, eight pennies ahead of the estimate. A weaker dollar did act as a partial driver of the profit performance.

A slightly better than expected jobless claims report and a slightly higher revision to GDP did not propel stocks further on the end of the quarter after a strong September. Even strong data out of Chicago PMI managed to offer no additional rally today and that DJIA 11,000 looks more elusive. And how about that $80 oil?

Here were the unofficial closing bell levels:

Dow Jones 10,788.05 -47.23 (-0.44%)
S&P 500 1,141.20 -3.53 (-0.31%)
Nasdaq 2,368.62 -7.94 (-0.33%)

TOP ANALYST CALLS

Reportedly, a U.S. House committee found a bit more about Johnson & Johnson (JNJ) recalls than it wanted during a recent investigation into last year's recalls. Remember, Johnson & Johnson had a massive recall of some of its over-the-counter (OTC) medicines.

Turns out that the House Committee on Oversight and Government Reform announced Tuesday that it obtained an e-mail highlighting an agreement between the FDA and Johnson & Johnson that would allow the company to "conduct an unpublicized recall of adult Motrin." Motrin is produced by Johnson & Johnson's McNeil consumer medicines, and this is the unit that was allowed to carry out the "phantom recall."

It really wasn't a very good news day for stocks, but the market was flat anyway. The University of Michigan consumer index hit a one year low, which was not expected. It dropped to 66.6 in September from 68.9 last month. Consensus estimates were for the number to be 70.

Consumer inflation literally dropped to zero, once food and energy were factored out. There has not been much talk about deflation recently, but when price pressure dissipates, the specter appears.

Today's closing bell numbers:

Dow Jones 10,607.85 +13.02 (0.12%)
S&P 500 1,125.59 +0.93 (0.08%)
Nasdaq 2,315.61 +12.36 (0.54%)

Early Friday, American health care giant Johnson & Johnson (JNJ) announced that it is in "advanced talks" to acquire Dutch biotech firm Crucell NV. According to the report, the deal (which would help strengthen JNJ's vaccine business) is going to cost $2.29 billion. JNJ already owns a 17.9% stake in Crucell and will be offering €24.75 in cash for the remaining 82%. The offer price represents a 58% premium from Crucell's Thursday close.

In a joint statement, the companies noted expectations for "Crucell's strength in the manufacture, discovery and commercialization of vaccines would create a strong platform for Johnson & Johnson in the vaccine market." According to the Associated Press, JNJ has roughly $64 billion in annual sales and is the "world's biggest and most broadly based health care company."

The shares of health products/pharmaceutical giant Johnson & Johnson (JNJ), first discussed here on May 20, 2009, at a price of $55.87, came very close this summer to being stopped-out the sell/stop loss of $56, but it appears a double-bottom is now in place.

In addition, JNJ has moved back above the key, 50-day moving average -- another bullish sign, for those who endured JNJ's exasperating tumble.

Moving forward, Look for JNJ's 2010 revenue to increase 3% to 4%, boosted by growth in pharmaceutical revenue, despite some sales erosion to generics. Meanwhile, new orthopedic and cardiovascular products should help the company's medical device unit perform adequately in 2010.

Medical technology company Medtronic (MDT), whose colleagues include Boston Scientific (BSX) and Johnson & Johnson (JNJ), has not had a good year. The chart communicates a very bearish situation. But when a stock takes a significant dip, many investors wonder if it is time to buy.

Earlier in the week, the business reported disappointing fiscal first-quarter news. If that wasn't enough, UBS issued a downgrade on the shares. The firm has reduced the equity's status to neutral from buy, according to BloggingStocks' analyst calls article. The price target is $33. Medtronic finished Thursday's session at a quote of $32.28.

Johnson & Johnson (JNJ) announced Monday that it is recalling 1-Day Acuvue contact lenses sold mainly in Japan and other countries in Asia and Europe. None of the recalled contact lenses were sold in the U.S. or in Canada.

The company said that it received a "limited number" of complaints from Japanese customers of unusual stinging or pain when inserting the Acuvue lenses. The recall started on August 18 and was not immediately announced in the U.S.

This past week, Warren Buffett's holding company, Berkshire Hathaway (BRK.A), gave an update on what its stock holdings look like, what stocks were added, which ones added to, and which ones it was selling. Though there aren't many major changes in the list, there are some telling points that most investors can study and learn how to invest like Mr. Buffett.

These are stocks he's added to or added in the last quarter:

• Becton Dickinson (BDX): Up 155,000 shares (total owned: 1.889 million shares).
• Fiserve Inc. (FISV): This is a new position of 4.4 million shares.
• Iron Mountain (IRM): Increased position by 206,000 shares. Has been buying this over the past several quarters with a starting position of 3.3722 million shares.

Here is a common sentiment about the stock market: "No fun at all. As I have said before, I believe it has turned into one big casino largely divorced from its original goal of providing capital to companies who produce something of value."

There's a lot of truth to what "granny" recently said to me in an e-mail. Fortunately she also noted "FYI Granny's up 5.86% + dividends." That would give her a gain of about 10% in the past ten months since I posted Where should granny put $50,000, suggesting a very conservative portfolio for an uncertain time.

Not only has she earned a very nice return, surpassing her CD account by 9.5% (20 fold), but she was able to do so with a great deal less volatility than the overall market most of us have lived through.

"Investing in conservative stocks to build or rebuild the core of your portfolio makes sense right now; investors should buy companies that have a long history of steady earnings and dividend growth, through good times and tough times," says J. Royden Ward.

The editor of the specialty newsletter, Cabot Benjamin Graham Value Letter, explains, "The obvious benefit of adhering to a disciplined system of value investing like ours is that you build long-term profits and, ideally, financial independence.

BP (BP) closed up $1.79 Monday to $38.65. The company reported a $17 billion loss Tuesday morning and announced it has replaced CEO Tony Hayward with Bob Dudley. Overall option implied volatility of 51 is below a level of 78 from June 28, according to Track Data, suggesting decreasing price movement.

Genzyme (GENZ) closed up $4.86 to $67.38. Sanofi-Aventis (SNY), GlaxoSmithKline (GSK) and Johnson & Johnson (JNJ) may be interested in making a play for GENZ, reports the Wall Street Journal. Overall option implied volatility of 40 is above GENZ 26-week average of 31, according to Track Data, suggesting larger price movement.

Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Yesterday I was shocked by the response to a poll I conducted in this very same column where I suggested that six out-of-favor stocks were a buy and would out perform the over all market. The results left me puzzled for several reasons.

For one thing I have been blogging for Aol. for over four years and I cannot remember an occasion that there was so much unanimity on anything before. I expected approximately equal votes for each of four possible responses to my question, and an appreciable number that might think I was off my rocker. Instead, I was jolted to a new reality when 84% of the respondents agreed that the six toxic stocks would outperform.

The six stocks are Bank of America (BAC), Citigroup (C), General Electric (GE), BP p.l.c. (BP), Goldman Sachs (GS) and Transocean (RIG). I thought I was taking a contrarian position and based on recent market activity that would seem to be the case. This raises another question. If my readers are any reflection of the market, how could the market move in the opposite direction of such overwhelming sentiment?

Johnson & Johnson (JNJ) reported second-quarter net earnings and diluted earnings per share of $3.4 billion and $1.23, respectively. Taking an after-tax gain of $67 million out of the equation (stemming from the net impact of "litigation matters"), the company earned $1.21 per share and $3.4 billion. The consensus estimate called for earnings of $1.21 per share and revenue of $15.69 billion.

Quarterly revenue checked in at $15.33 billion. In addition, JNJ revised its full-year estimate, now expecting adjusted earnings between $4.65 and $4.75 per share. This new range includes the impact of the recalls of some OTC medicines, the suspension of production at a plant in Pennsylvania, and poor foreign-exchange rates.