Thursday, March 27, 2008

Is J&J keeping up with their investor relations?


Investor relations is an important part of a company, without people investing in your company, there would be no company!

Johnson & Johnson keeps their investor relations page very up to date on their website, with easy to read information. The annual report is available in two forms, a print form or a web form. This is a good idea because some people would rather look at the annual report on the web, and the way they have it set up looks like you actually have the report in your hands. The pages flip and it seems as though you have printed it out. This is also a way that the company is helping to save the printing of paper which makes them look good and that they are taking care of the environment.

The 2007 annual report looks like its more of a marketing piece for the company. It starts out with the letter to the shareholders from the CEO, and then is followed by many different stories, including a story about a website available for new moms who can talk to other moms about their babies, good times or bad, and how Johnson & Johnson was invloved with that. It has many stories to show how caring and involved Johnson & Johnson has been to their community. There is also a link you can click to watch a video about each story. At the end of the annual report is where they put a lot of the financial information which includes a lot of charts to explain their earnings. To me, it seems the main point of the annual report is to tell a story.

Johnson & Johnson also just simply posts their SEC filings on their website, to take a look at it click here.
The letter to the shareholders from the CEO talks about the highlights of 2007, explaining how they delivered solid results in 2007 for one of their more challenging years in recent memory. It talks about taking health and well-being to the next level, and how their commitment is to the shareholders. I think investors will feel good about the company they are investing their money in because J&J really shows everything they have done in the past year. The letter includes charts and graphs to further explain what is going on in the company, and I believe that also helps in making the letter credible and believable. The tone of the letter seems to be informative, they are explaining a lot of what went on in the company and a lot of what the future goals are as well. To take a look at the letter to the shareholders, check out the 2007 annual report.

The news release about the company's earnings is very long and kind of confusing. There seem to be a lot of numbers and percentages involved just looking at the first page. Also included in the news release is a breakdown of all the data involved with the company's earnings, which could be very confusing if you didn't know what you were looking at.

The CEO's quote talks about how there were certain challenges in the market, but their broad base of bussinesses allowed them to achieve solid results in 2007, building on their foundation of long-term profitable growth. I don't know if this quote is strong enough to instill confidence in investors, it doesn't really talk about their future or how they are going to go about their goals for the future. I might have tried to get a different quote from the CEO if possible to talk about 2007 but to also give a little blurb about their future goals and for their investors not to worry.

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