Recall gives the chance to buy on a pullback
Wednesday, May 7th, 2008Scott’s Miracle Grow was in the mid $50s in 2007 and now its trading down at $30 per share. Though the company recently announced that it would be recalling four of its products, the long term credentials look no worse today than when the stock traded at $56 a share.
Today the company announced that four products are under recall. Two of which are improperly labeled and the other two weren’t yet registered with the EPA. While this does cause some short term troubles, the best time to buy in a good investment is when its cheap. The stock lost 10% on news that hardly affects the long term prospects, at this price, SMG is a great investment. Continue Reading »