The third company Tim's watching is down, surprisingly enough, because of things the company actually did. Johnson & Johnson (NYSE: JNJ) has been dragged down by its product recalls. But the company's been here before, and a postrecall lull has always proven to be a good time to buy. Additionally, J&J is circling a potential purchase of Smith & Nephew (NYSE: SNN), a provider of medical products that meet the needs of an aging population. Tim feels that company would be a nice addition for the vast and diverse stalwart that Tim describes as a mini health-care mutual fund.