JNJ continues to lack the growth to warrant a premium valuation.

The net payout yield continues to collapse as the company pulls back from stock buybacks despite the weak stock during Q3.

The balance sheet leaves the company in a weakened position due to lawsuit liability risk.

My constant investment thesis with Johnson & Johnson (JNJ) has been that the business prospects aren't as good as the market generally presents via the stock price. The recent rally back above $135 is a prime example of investors seeing value where the company isn't willing to invest via share repurchases. Don't chase the stock for the meager 2.6% dividend yield.

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