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Re: Play4keeps2 post# 19107

Thursday, 12/18/2014 5:52:28 PM

Thursday, December 18, 2014 5:52:28 PM

Post# of 97093
I mostly agree with you play. J&J's history of selling off under performing divisions indicates that if they have a willing buyer they will dump the division even at a loss. The loss is a one time event. An under performing division J&J keeps is there to look at quarter after quarter. I believe however that J&J has decided to settle with DECN and perhaps allow them to continue sales while dumping their under performing Lifescan division, because they may feel they have no choice. Low balling a buyout of a product after beating up on the company for three years with what is called a "phantom litigation," could lead to more of the same anti-trust charges against J&J, only this time by a larger competitor with more resources following the tail of bread crumbs DECN left. My partner thinks that if DECN does not settle for the high-teens, low twenties in the next 10 days, the talk of settlement will die down until mid-January and then heat up again beginning in the mid-twenties. Perhaps not so good for traders looking to unload before years end, but much better as we roll into 2015.