I made a decision a while back in the year (in January) when evaluating my shopping list to open a position for my managed portfolio in JNJ if the price dips under $64.
Today, I made the purchase in the mid to high 63s. The JNJ earnings were decent. Not spectacular, but better than people expected. International sales were quite good, led by Remicade, and management continues to expect $5.10s in earnings for FY2012.
Using a $5 earnings target for FY2012 and $64 price, JNJ is priced at just under 12.8x PE. A pretty attractive price for a world class business. Compared to 15x-20x for other consumer staples and defensives, I think JNJ should give investors a pretty good forward return at these valuations. JNJ also offers a 3.5-3.6% dividend yield, that should be raised in the next 2 weeks by 5-10%.
I didn't buy a lot, as I think the market could still correct down to 1340-1360, but I established an initial position.