The recall information that I reported came from an individual that I work with whose family has had Watson in their portfolio for many years. Over the years of holding this stock, they were very pleased with its rise in price, but when it took its sudden sharp dive, they called their money manager to find out why. Apparently, there were "black specks" in a product...don't know which one...and it was recalled. As you may know, the pharmaceutical industry is EXTREMELY regulated both internally by the companies themselves and the FDA to ensure product quality and purity. The company I work for goes through incredible quality assurance steps throughout its manufacturing processes. At times, although very rare, it is possible for contamination to occur. The VAST majority of the companies in this industry will make a recall themselves if they determine a problem exists and notify the FDA immediately. A single recall does not mean that things are cratering at the company, however, if the frequency of recalls increases, it might. IMHO I do not see that at Watson. At this time, I do not hold any Watson stock, but was looking at it when it was going down, hoping for an entry point at 35 or lower to add it to my IRA for the long term. Its a good company with a future.
Selk |
