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business newsTwo Ways To Play: Johnson & Johnson & New Acquisition?
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Johnson & Johnson (JNJ) CEO William Weldon says the company has a list of potential takeover targets and it will, at the very least, look into making possible deals with other big drugmakers.
According to Bloomberg, Johnson, the world’s largest healthcare company, already made 2 acquisitions last month. It's now on the prowl for like companies beaten down by the recession.
“We’ve historically not jumped into big mergers and acquisitions,” Weldon said. “But today’s environment is very different than it has ever been before. There’ll be nothing that will go by that we don’t at least take a look at.”
Johnson & Johnson' fourth-quarter results beat analyst estimates this morning, but its 2009 profit forecast fell short of expectations.
Shares of the company fell 1.2% in today’s session. 
From the Bull Pen: Toddo noted the action in DRG, the Big Pharma index. Bulls wishing to play this can still consider the Big Pharma ETF (PPH). A sell stop can be set near $58. 
From the Bear Cave: It seems dangerous to press the downside here after such a negative reaction in US equities over the past few weeks. Instead, bears can consider a downside play in the dollar using the Dollar Bearish Fund (UDN); a sell stop can be set below $24.
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