Buy 99 Shares of J&J Stock

Just saw this on Fox Business. Need to purchase the stock soon. No guarantee on the $1000 profit but should be close. Don't buy more than 99 shares. Read article for details.
Interesting opportunity. Please don't invest based on my post, do your own research!!!



https://www.msn.com/en-us/money/other/want-to-make-1-000-in-2-weeks-buy-99-shares-of-j-j-stock/ Link may not work, I was able to get full article but see below for article



Want to make more than $1,000 in about two weeks?

Many individual investors are trying to do that by purchasing 99 shares of Johnson & Johnson to take advantage of the “odd-lot” rule in the company’s $40 billion exchange offer for Kenvue. The potential payoff if things go right is more than $1,000.

That payoff, however, isn’t guaranteed because it hinges on the near-term stock prices of the two companies.

The opportunity arises because the Johnson & Johnson (ticker: JNJ) exchange offer for Kenvue (KVUE), which holds the consumer health business formerly owned by J&J, allows holders of less than 100 shares of J&J stock—or an odd lot—to get a full allocation of Kenvue if they submit all their shares.

Other J&J shareholders are likely to be prorated, meaning they won’t get a full allocation of Kenvue. It’s tough to peg the proration now but based on other corporate exchange offers in the past decade it could be in the 20% to 40% range, meaning participating J&J holders would get just 20% to 40% of their stock converted into Kenvue shares.

The tax-free J&J exchange offer is the largest ever and promises to generate significant interest from retail investors. J&J is one of the most widely held stocks by individuals along with such blue chips like Exxon Mobil, AT&T.

J&J announced the exchange offer on July 24, and it is due to expire on Friday, Aug. 18. J&J plans to exchange 1.5 billion shares of Kenvue, which owns Band-Aid, Listerine, Tylenol and other brands, for its own shares. The total number of Kenvue shares exchanged could be as high as 1.7 billion, or roughly 90% of Kenvue stock. J&J took Kenvue public in May.

If J&J holders do nothing, they won’t participate in the exchange offer. They need to voluntarily opt in to participate. The exchange offer amounts to a giant J&J stock buyback of about 8% of its shares financed with its $40 billion Kenvue holding.

J&J is offering holders an incentive to make the exchange—known as a split-off on Wall Street—of about 7.5%, or roughly $107.50 in Kenvue stock for $100 of J&J.

Kenvue stock closed down 0.1% Wednesday to $23.35 while J&J fell 0.1% to $173.07.

J&J plans to set the exchange ratio based on the volume-weighted average price of the two stocks in a three-day period from Aug. 14 to Aug. 16. The exchange offer will expire on Aug. 18 unless extended.


J&J is providing an update on an exchange offer website, www.JNJSeparation.com, about the transaction. The site shows that if the offering were made based on the past three days trading of J&J and Kenvue stock, investors would get about $185 of Kenvue shares for each J&J share based on a ratio of 7.8764 Kenvue shares for each J&J share.

For an investor exchanging 99 shares, this results in a profit of about $12 per J&J share, or about $1,200. The investment would cost about $17,000.

Holders of odd lots of less than 100 shares need to submit their full investments to avoid being prorated. And holders of more than 100 shares will be prorated, even if they submit 99 shares or less in the exchange, based on Barron’s reading of the S-4 document filed by Kenvue. Interested investors should look to question 21 on page 8 of the document.

Here are some of the risks if an investor buys 99 shares of J&J and plans to make the Kenvue swap. If J&J stock falls in the next week, he or she will get less Kenvue stock. And if Kenvue falls after the exchange ratio is set next week, the investor will get less value.

One potential positive is that arbitragers have been buying J&J and selling short Kenvue to take advantage of the 7.5% spread. This has depressed Kenvue by about 3% since the deal was announced in July while J&J is up about 2%. This could mean that Kenvue may appreciate once the deal is done and that trade is unwound.

When General Electric did an exchange offer for Synchrony Financial in 2015, GE stock outperformed before the deal and Synchrony outperformed GE immediately thereafter.

Another wrinkle is that J&J is capping the exchange ratio at about 8.05 Kenvue shares for each J&J share. J&J holders making the exchange will get less than a 7.5% premium if the ratio is above 8.05. The ratio is getting closer to that cap, standing at 7.8764 based on the last three days of prices.

Individual investors who wait could be disappointed. While the offer expires on Friday Aug. 18, brokerage firms may want retail investors to make their elections a day or two earlier.

And individual brokerage firms have different processes for taking customer instructions with at least one using an automated system and others requiring that investors make their elections on the phone.

One financial advisor warns investors about call waiting times after spending time on the phone this week with two brokerage firms.

There could be a crush in the coming week as the deadline nears. The printed Kenvue S-4 document hit investor mailboxes only recently and it is long and complicated, running over 400 pages.

For longtime J&J investors, the choice is to hold J&J, one of the world’s largest healthcare companies with big pharmaceutical and medical-device businesses, or swap for Kenvue, a leading consumer health company.

J&J trades for about 16 times 2023 earnings while Kenvue trades for about 18 times. J&J yields 2.8% against 3.4% for Kenvue. The case for Kenvue is that it has a stable business with well-known brands and is capable of mid-single earnings growth—and possibly better—in the coming years.

J&J is absorbing liability in the U.S. and Canada for Kenvue’s talc liabilities stemming from sales of Johnson’s Baby Powder, while Kenvue retains international legal risk for the product.

The overseas risk isn’t seen as significant, Moody’s Investors Service said earlier this year, but it isn’t easy to handicap.

Many J&J holders want to make the swap for long-term exposure to Kenvue, while others may want to make a quick profit on the deal.

I didn't read it all, but normally there would be a cut off date and you would have to own those shares before it. Must be some fine print somewhere.

The guy who wrote the article and was speaking this morning said you could buy this next week and still get in, that is why it is somewhat unusual. But read all and any fineprint you can find and talk with your broker to ensure he knows you want to trade your stock to Kenvue.

money making rule #1 ... If it sounds too good to be true....
new modern money making rule #2 ... If it sounds too good to be true and its posted on the internet for the general public ....

Not much of a scam. You purchase 99 shares of JNJ. Potential opportunity to have shares exchanged to Kenvue shares worth approximately 1,000-1,200 more than the JNJ stocks then you can hold or sell. Worst case is you own 99 shares of JNJ stock that doesn't get converted and you can hold or sell it whenever.

I only gotta buy $18,000 worth of stock to make $1000?

Nope. I can make more then $1000 a day, every day, if I choose to.

I would be pretty disappointed if i made $1000 in two weeks

Don't fool with such

Just looked at the charts. This don’t add up.

Don't take advice fro.m thw media on stocks. You'll lose your arse.

If your willing to work and have a brain that is functional, you can make more than that in 2 weeks…

Without buy anything up front…

It's not about working with your back or brain , it's about letting your $ work for you.

Noticed today peoples bank was offering a little over 5% CD for 9mos. That got my attention.

This doesn't involve work, just taking advantage of a situation with JNJ separating from Kenvue. Funny how people compare this to what they make in a week or two from working. I would certainly hope most folks will make more than 1000 in two weeks. Just a quick call to place a stock order and then a sell order and you are possibly ahead 1000 but this is just info for those that are comfortable with the process and certainly not for anyone who is unsure.

Call me a dumb redneck hillbilly… I’ll trust mine with me and me with making more until it comes to a point I can’t….

Wife and I "bought" a couple about two months ago at 5.35%. There may be some out there 5.5-6 % now.

I did purchase 99 shares of the JNJ stock then waited for the exchange to KVUE stock and just sold the KVUE stock this morning with a profit of $1,050. The tip worked like a charm and hopefully others were able to get similar results.