Mead Johnson (MJN) Tumbles On Alleged Baby Death from Enfamil
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Shares of Mead Johnson (NYSE: MJN) have been in free fall Thursday following reports of a baby death linked to its Enfamil baby formula.
The stock took a step drop at the beginning of the day, road out the drop for a few hours, just to take another steep fall. Since then shares have bounced back from the $61 per share range to $69 per share. Shares are currently trading down 8 percent on the day at $70.20 per share.
The first sell off followed news that Wal-Mart (NYSE: WMT) was initiating a limited recall on Mead Johnson's Enfamil baby formula product on reports the death of a child may be directly related to the product.
After leveling out for most of the day, reports were released stating a second child may have been affected from the formula. This is where investors took their second drive on the day and things started to look really ugly for the stock.
Roughly an hour later, management at Mead Johnson said the second child who was allegedly sick due to the formula never actually took any Enfamil. Following this investors held on and starting buying as volumes increased rapidly along with the stock's price. Shares are up over 14.5 percent since their midday low and continue to rise.
Volatility will likely remain extremely high on the stock until the FDA releases a statement giving the formula a thumbs up or down.
The stock took a step drop at the beginning of the day, road out the drop for a few hours, just to take another steep fall. Since then shares have bounced back from the $61 per share range to $69 per share. Shares are currently trading down 8 percent on the day at $70.20 per share.
The first sell off followed news that Wal-Mart (NYSE: WMT) was initiating a limited recall on Mead Johnson's Enfamil baby formula product on reports the death of a child may be directly related to the product.
After leveling out for most of the day, reports were released stating a second child may have been affected from the formula. This is where investors took their second drive on the day and things started to look really ugly for the stock.
Roughly an hour later, management at Mead Johnson said the second child who was allegedly sick due to the formula never actually took any Enfamil. Following this investors held on and starting buying as volumes increased rapidly along with the stock's price. Shares are up over 14.5 percent since their midday low and continue to rise.
Volatility will likely remain extremely high on the stock until the FDA releases a statement giving the formula a thumbs up or down.
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