Stock Selection Guide Updated. The SSG for Johnson & Johnson has been revised. JNJ remains a high quality company and is within the “buy” range.

From the August 2004 IAS: Johnson & Johnson had a solid second quarter of 2004 with earnings per share up 17% on an 11% increase in sales. Of this sales increase almost 3% was because of the impact of currency translation. Various new products have been introduced recently, including, notably, a device to replace a spinal disc. This very solid, welldiversified medical company continues along its path of reasonable, moderate growth. JNJ (55.92) is a buy up to 69.

Company Description: Johnson & Johnson manufactures and sells health care products. Major lines by segment: Consumer (baby care, nonprescription drugs, sanitary protection, and skin care), Med. Device & Diag. (wound closures, minimally invasive surgical instruments, diagnostics, orthopedics, and contact lenses), and Pharmaceutical contraceptives, psychiatric, anti-infective, and dermatological drugs). 2003 sales (operating income) by segment: Pharm., 47% (60%); Med. Device & Diag., 35% (28%); Consumer, 18% (12%). Int’l business, 40% of ’03 sales; R&D, 11%. Has 101,800 empl.; 164,200 stockholders. Off./dir. own less than 1% (3/04 Proxy). Chrmn. & CEO: William Weldon. Inc.: NJ. Addr.: One J&J Plaza, New Brunswick, NJ 08933. Tel.: 732-524-0400. Web: www.jnj.com