Hey, guys! I need your opinions on following topic. I have been tracking news on two stocks which are in my portfolio: Chipotle (NYSE:CMG) and Johnson & Johnson (NYSE:JNJ) (http://www.cityfalcon.com/watchlists…).
When e-coli outbreak was revealed at 20 Oct in Chipotle restaurants chain its shares immediately plunged more than 8% and had a deep consequences which led stock down more than 40%. Now we have almost the same situation with Johnson & Johnson, when appeared that regular use of its Baby Powder leads to ovarian cancer (http://www.reuters.com/…/us-johnson-johnson-talc-cancer-idU…).
This Monday Court ordered Johnson & Johnson to pay $72 million in damages to the family of a victim. Notwithstanding above facts shares of Johnson & Johnson still be growing.
What is the difference of these two cases?
When e-coli outbreak was revealed at 20 Oct in Chipotle restaurants chain its shares immediately plunged more than 8% and had a deep consequences which led stock down more than 40%. Now we have almost the same situation with Johnson & Johnson, when appeared that regular use of its Baby Powder leads to ovarian cancer (http://www.reuters.com/…/us-johnson-johnson-talc-cancer-idU…).
This Monday Court ordered Johnson & Johnson to pay $72 million in damages to the family of a victim. Notwithstanding above facts shares of Johnson & Johnson still be growing.
What is the difference of these two cases?
