J.P. Morgan Asks: Do Johnson & Johnson's Synthes Pop

According to J.P. Morgan, Johnson & Johnson JNJ has for the last several months publicly discussed its interest in executing one or more large acquisitions. J.P. Morgan reported that this is why J&J is not buying back stock, despite pressure from shareholders and the fact that it's sitting on more than $27B in cash ($11B net cash), the vast majority of which resides overseas. “If the spine market has structurally slowed amidst significant pricing pressure and fundamentals in trauma may not be sustainable, why buy Synthes? If you're J&J, why increase your exposure to these markets in what would be the biggest deal in the company's history?” Johnson & Johnson closed yesterday at $60.56.