And boy do I wish I hadn’t.
Back on July 14 I bought 100 shares of BAX at 58.49. They are a medical products and services company that target a range of diseases (hemophilia, kidney disease, cancer, etc.)
Their fundamentals looked solid, stock price was on the up and up…
And then today they announced earnings. Where they surpassed the estimates and raised their guidance for the full year. Second quarter profit grew by 39%.
Alas, late Wednesday the FDA classified a recall on one of Baxter’s pump devices. A “Class 1 recall” which is apparently for dangerous or defective products that could cause serious health problems or death. Baxter’s CEO (Robert L. Parkinson) says that the recall will have no material effect on the finances.
It looks like the stock market disagrees.
And now Baxter is trading at 56.00. Ouch. I’ll keep holding… for now…