Sell Mead Johnson Nutrition (MJN)
posted on January 27, 2012 at 11:49 am
Yesterday, January 26, Mead Johnson Nutrition (MJN) reported fourth quarter earnings of 52 cents a share, a penny above Wall Street estimates, and revenue of $911.3 million, above the Wall Street consensus of $894.04 million.
On the news the stock closed up at $74.01. That–$74 a share–was the price I set for an exit in the aftermath of the death of a baby in Missouri that had consumed the company’s Enfamil baby formula from a Cronobacter infection. To me the stock is now a sell. (The shares are a member of my Jubak’s Picks 12-to-18 month portfolio http://jubakpicks.com/the-jubak-picks/ )
The important issues are valuation and timing. Read more
