January 19, 2014
by Zacks
Johnson & Johnson (JNJ) (click here) has received a binding offer for its Ortho-Clinical Diagnostics (OCD) business from The Carlyle Group(CG). The Carlyle Group is looking to acquire the OCD business for $4.15 billion....
The solution is simple if the State takes an initiative to maintain J&J. They are short on capital. They need a zero interest loan.
...Johnson and Johnson had been looking at different strategic options (including divestment) for its OCD business for quite some time. The divestment, if it goes through, would allow the company to maximize shareholder value and focus more on core and higher growth areas (including companion diagnostics, which supports pharmaceutical pipeline development). We are positive on the potential disposal of the OCD segment....
Selling off their Diagnostics is not the answer. The company WANTS to expand into an area of 'delivery' of their products to customers. THAT in and of itself is not going to lead to greater profitability or an arm of the company that will realize profits. Maintaining their current baseline of profitability and market penetration is vital to enhancing their delivery ambitions. J&J is playing with 'their best place' when realizing they are between a rock and a hard place to find liquidity to pivot to MAINTAIN or increase market share.
The 'old world' delivery methods of J&J causes concern by the Board and CEO. It is more or less concern for maintaining their current market share outside of diagnostics. Therefore, they need liquidity and to achieve it they are taking the lesser of two evils. No American company the size and prestige of J&J should have to choose between two evils. The State of New Jersey needs to ask if it can help J&J rather than having it disappear to corporate raiders.
...GlaxoSmithKline (GSK) divested several non-core brands from its Consumer Healthcare segment....
Who's next Squibb? New Jersey needs to pay attention. It's economy revolves around these companies. Health care is hot right now. It is also very difficult for stable and long lived companies to compete in a market place where Super Billionaires can cause them difficult competition. This is still another problem caused by the 1% and 0.1%. They have destroyed many companies that were not CORE to economies around the country and substituted big box stores. They have eliminated manufacturing in the USA and caused greater poverty.
So, now that they have destroyed segments of commercial marketing to consumers they are turning to WHAT IS LEFT and that is the stable and long lived companies in the country. The trade agreements will finish them off and the American consumer will be seeing their brand name products disappear while new product names from abroad replace them.
The Obama Administration needs to realize 'the trend' with companies like Carlyle. To begin, Carlyle has caused a national security problem. They don't care about any of it. They want what they want and that is more money at any cost. Then when watching the trends of this company there is no finding of returning a company to prominence while holding a large stock share. That is what investment companies are suppose to do. They are suppose to bailout companies, return their competitive edge and reap the profits of being a large stockholder. That is not what is happening. Companies like Carlyle are buying off parts of companies to raid their treasuries and sell off their assets.
Ortho Diagnostics is a huge company located in the Raritan-Branchburg area of New Jersey. It has been around for decades. It has supplied stable jobs manufacturing HIGH QUALITY products. To allow this company to be bought up as an investment by Carlyle is sincerely dangerous. Carlyle sees the TPP and wants J&J Diagnostics more than gold. This is very dangerous. Ortho Diagnostics employees 4500 people globally with operations in Rochester, NY; Pompano Beach, Fla. and Wales.
If state and federal authorities don't take an interest in the companies that are at the core of the USA economy, the country will find itself a growing Third World nation.
The beauty of these companies is their stability. Their longevity has brought them to a place that can't be replaced. If Ortho Diagnostics closes it's doors, it can't be replaced in the USA. The COST of opening a new Ortho is out of reach on today's dollar. What will occur is substitutions from China and the other BRIC countries. The products will be poorer quality, ask the Chinese. Currently, a Chinese family pays have their income to purchase The West's baby formulas, because those manufactured in China can cause physiological damage to their children.
There should be a war between companies like Carlyle and the governments where these companies exist to maintain the companies fiscal integrity. It is vital to keep them as they are to insure a functional future to Americans.
If J&J wants to compete in a greater way then the state and federal government should be just as interested in that ambition.
There is a reason Warren Buffet is wealthy and it isn't because he destroys companies. The companies Buffet carries in his investment portfolio are some the most stable companies in the USA. Their products carry loyalty by the American consumer and companies have a good profit margin for stockholders. Greed has very little to do with Buffet's investment portfolio.
by Zacks
Johnson & Johnson (JNJ) (click here) has received a binding offer for its Ortho-Clinical Diagnostics (OCD) business from The Carlyle Group(CG). The Carlyle Group is looking to acquire the OCD business for $4.15 billion....
The solution is simple if the State takes an initiative to maintain J&J. They are short on capital. They need a zero interest loan.
...Johnson and Johnson had been looking at different strategic options (including divestment) for its OCD business for quite some time. The divestment, if it goes through, would allow the company to maximize shareholder value and focus more on core and higher growth areas (including companion diagnostics, which supports pharmaceutical pipeline development). We are positive on the potential disposal of the OCD segment....
Selling off their Diagnostics is not the answer. The company WANTS to expand into an area of 'delivery' of their products to customers. THAT in and of itself is not going to lead to greater profitability or an arm of the company that will realize profits. Maintaining their current baseline of profitability and market penetration is vital to enhancing their delivery ambitions. J&J is playing with 'their best place' when realizing they are between a rock and a hard place to find liquidity to pivot to MAINTAIN or increase market share.
The 'old world' delivery methods of J&J causes concern by the Board and CEO. It is more or less concern for maintaining their current market share outside of diagnostics. Therefore, they need liquidity and to achieve it they are taking the lesser of two evils. No American company the size and prestige of J&J should have to choose between two evils. The State of New Jersey needs to ask if it can help J&J rather than having it disappear to corporate raiders.
...GlaxoSmithKline (GSK) divested several non-core brands from its Consumer Healthcare segment....
Who's next Squibb? New Jersey needs to pay attention. It's economy revolves around these companies. Health care is hot right now. It is also very difficult for stable and long lived companies to compete in a market place where Super Billionaires can cause them difficult competition. This is still another problem caused by the 1% and 0.1%. They have destroyed many companies that were not CORE to economies around the country and substituted big box stores. They have eliminated manufacturing in the USA and caused greater poverty.
So, now that they have destroyed segments of commercial marketing to consumers they are turning to WHAT IS LEFT and that is the stable and long lived companies in the country. The trade agreements will finish them off and the American consumer will be seeing their brand name products disappear while new product names from abroad replace them.
The Obama Administration needs to realize 'the trend' with companies like Carlyle. To begin, Carlyle has caused a national security problem. They don't care about any of it. They want what they want and that is more money at any cost. Then when watching the trends of this company there is no finding of returning a company to prominence while holding a large stock share. That is what investment companies are suppose to do. They are suppose to bailout companies, return their competitive edge and reap the profits of being a large stockholder. That is not what is happening. Companies like Carlyle are buying off parts of companies to raid their treasuries and sell off their assets.
If state and federal authorities don't take an interest in the companies that are at the core of the USA economy, the country will find itself a growing Third World nation.
The beauty of these companies is their stability. Their longevity has brought them to a place that can't be replaced. If Ortho Diagnostics closes it's doors, it can't be replaced in the USA. The COST of opening a new Ortho is out of reach on today's dollar. What will occur is substitutions from China and the other BRIC countries. The products will be poorer quality, ask the Chinese. Currently, a Chinese family pays have their income to purchase The West's baby formulas, because those manufactured in China can cause physiological damage to their children.
There should be a war between companies like Carlyle and the governments where these companies exist to maintain the companies fiscal integrity. It is vital to keep them as they are to insure a functional future to Americans.
If J&J wants to compete in a greater way then the state and federal government should be just as interested in that ambition.
There is a reason Warren Buffet is wealthy and it isn't because he destroys companies. The companies Buffet carries in his investment portfolio are some the most stable companies in the USA. Their products carry loyalty by the American consumer and companies have a good profit margin for stockholders. Greed has very little to do with Buffet's investment portfolio.
