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Started: driftking27, 22 May 2024 08:40
Last post: AbjectPerformer, 19 Jun 2024 06:27
Doesnt look like they’re doing well in the storm at the moment though
Go in on both! ..dividend titans, weather any economic storm like pandemic...and recently learnt about bond proxy effect (so when interest rates are high these drop)
How can you decide between this and Diageo when looking to start a position?
Both are down and quality companies. Just wondering which to go for?
A drop of 2.4% because inflation has only dropped to 2.3% laughable
Started: meshtrader, 2 May 2024 05:59
Last post: Alas_Smith, 21 May 2024 22:44
Many a happy weekend was spent at Malshanger House with the Colman family by me in the 70’s and 80’s. I rather lost touch with the family when Jamie went off the rails and sucked into religion but I still own shares in the now evolved company where dividends have repaid my capital many times over. Not a business I would been keen to buy shares in for the short term (2 years or less) but certainly one to give stability in volatile times.
Right on mission to screwing up sbux😂😂
https://www.youtube.com/watch?v=zaPJWgbliQ8
Last post: Mr.Picky, 24 Apr 2024 08:58
Dialled into the Q1 results presentation. Not impressed enough to want to stay with this one. The results were OK and the bounce back has started........finished? So actually I'm OUT now with a profit. (karlo90 I would be back in before 1000p)
It will bounce at 1000p
RKT
What an incredible fall for a major stock we have seen in the last five week. Having sold on 13 March at 5207p. I put the same money back in at 4123.4p first thing this morning. I got 25% more stock after expenses. Have to recognise that this is catching a falling knife but on these terms I'm happy to take it on. When the selling dries up this stock will bounce, helped by the share buy-back programme.
Started: karlo90, 17 Apr 2024 08:24
Last post: karlo90, 17 Apr 2024 08:24
Had dealings with these in the past and I was shocked at just how many chiefs there was. This is a company a shadow of its former self yet full to the gills with highly paid management. Avoid this one as it's not one for creating shareholder value.
Started: driftking27, 13 Apr 2024 11:29
Last post: driftking27, 13 Apr 2024 11:29
Hi all,
I’d wait and not jump in to add more still at the minute. This geopolitical is going to continue and the markets are going to suffer if we have Iran doing what they say.
This share cheap, still, but then again the whole of the UK FTSE is cheap versus S&P I’d say as much as 20-30% based on P/E’s.
We also have the real possibility of no rate cuts in UK which will possibly be the case for USA too.
Inflation is still high, but we all know that when they lower rates, inflation undoubtedly rise again. It’s a conundrum …
I’m around 4% here, not increasing unless we get close to 3000-35000p.
I believe we’re looking at Jan/Feb ‘25 for rate cuts
Started: driftking27, 4 Apr 2024 12:41
Last post: AllAtSea, 10 Apr 2024 09:16
Once I would have held onto this stock because I hate to realise losses and legal difficulties often get resolved with less impact than first thought. However, in this case I bailed out because I could invest my reduced capital in stock that were low for no good reason thanks to the under-appreciated London market. They were at 4451 on that day and of course my new investment has been pretty static, but at least it hasn't dropped! At some point I might return to RKT.
RKT is not just based on entamil
Found this on yawoo
What it does: Reckitt is a multinational fast-moving consumer goods manufacturer and marketer that owns brands including Finish and Gaviscon.
By Christopher Ruane. Blue-chip bargain or a falling knife – how best to describe Reckitt (LSE: RKT)?
The shares have moved down recently to their lowest price in over a decade.
There are good reasons for that, including a recent unfavourable legal judgement in the US relating to the company’s problematic infant nutrition formula business and sharply lower operating profit last year. Net revenue declined in the most recent quarter, due in part to accounting irregularities in a couple of Middle Eastern markets.
Clearly, management has a lot of work to do.
However, the business has a portfolio of attractive premium brands in categories likely to experience ongoing demand. It generates substantial free cash flow, is profitable with attractive margins and has been reducing net debt.
With a dividend of 4.4% and price-to-earnings ratio of 14, this FTSE 100 firm looks like offering good long-term value to me despite the risks.
Started: LGO-fan, 4 Apr 2024 07:42
Last post: LGO-fan, 8 Apr 2024 16:35
Conclusion
I remain confident that Reckitt Benckiser is a good investment over the long term. However, there are two issues we should not ignore – the technical picture on the one side and the litigations on the other side. Especially the lawsuits are a huge risk that is very difficult to assess.
To reflect my caution at this point, I will downgrade the stock to a “Hold” – and that is what I will do with my own shares: I will hold on to them as I still believe over the long run Reckitt Benckiser will be a solid investment but I would not purchase any additional shares at this point.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
Cont'd:
The stock market is certainly not always rational, but as reaction to the news the market capitalization of Reckitt Benckiser dropped more than $6 billion hinting that investors are fearing a huge damage for the business.
At this point, companies like Bayer (OTCPK:BAYZF) or 3M Company (MMM) come to mind. Both are cautionary examples for businesses really struggling due to legal matters and in both cases the stocks continued to decline further and further and there is still no end in sight. If this is the path Reckitt Benckiser is going down, it probably would be best to get out of the stock right now.
Technical Picture
And it seems like Reckitt Benckiser is facing another problem – its own chart. Following the annual results and the litigation news, the stock declined to a 11-year low. And in the process of declining during the last few weeks, the stock broke through several strong support levels – probably explaining why the stock is declining so steep. For starters, the stock broke through several lows from the years 2018 till 2023, which were a strong support level until recently. Additionally, the stock broke through a long-time trendline that has been in place since 2000 and it also broke through the 200-month moving average.
At this point, after breaking through several support levels, it doesn’t look good, and we certainly must take into account the risk of even lower stock prices. The only glimmer of hope right now is the fact that we are trading at the October 2013 low (but this is not really strong support level). Aside from this low, we are currently at the 50% Fibonacci retracement when connecting the low directly following the IPO and the highs of 2017 and that could be a stronger support level.
But at this point I would not bet on Reckitt Benckiser already having found its bottom and the risk of further declining stock prices seems to be high at this point.
Intrinsic Value Calculation
But while the chart is not really a supporting factor for Reckitt Benckiser right now, we can argue that the stock seems to be really cheap at this point. When using the free cash flow of fiscal 2023 (GBP 2,258 million) and a 10% discount rate as well as 718.5 million outstanding shares, the company has to grow slightly below 3% annually in order to be fairly valued.
At this point, I would argue that Reckitt Benckiser should be able to grow about 3% annually till perpetuity. At least for fiscal 2024, management is expecting growth rates for operating profit that might exceed 3% growth. Hence, we can make the case that Reckitt Benckiser is at least fairly valued right now. And in theory I would assume Reckitt Benckiser being able to grow with a higher pace, but considering the results, the outlook and the lawsuits it might be better to stay on the side of caution.
Cont'd:
For the full year of fiscal 2023, Nutrition generated GBP 2,410 million in revenue – a like-for-like decline of 4.0% for the full year. But when comparing the fiscal 2023 result to fiscal 2021, we see 18.0% volume growth – a solid growth rate and fiscal 2022 must be seen as positive outlier. We also must point out that North America is performing great – when comparing to fiscal 2021 – while the emerging markets are struggling.
The other two segments however could report low-to-mid single digit growth rates. And at least when looking at revenue, these two segments are the most important for Reckitt Benckiser with each segment being responsible for more than 40% of total revenue. Hygiene generated GBP 6,135 million in sales in fiscal 2023 and reported 5.1% like-for-like growth and Health grew 5.0% like-for-like and generated GBP 6,032 million in revenue.
And the outlook for fiscal 2024 is similar to fiscal 2023 – not great but also not a huge disappointment. Revenue is expected to grow between 2% and 4% on a like-for-like basis. And while Health and Hygiene are expected to grow in the mid-single digits, the Nutrition business is expected to decline in the mid-single digits once again. However, adjusted operating profit is expected to grow with a higher pace than revenue.
Results and outlook were not perfect, but it was enough to tank the stock in the double digits. And the second major drop came in mid-March after news about the Mead Johnson litigations were announced.
Mead Johnson Litigation
Following earnings, the stock declined more than 13% and mid-March the stock was sent down another 14.6%. This time the reason were not quarterly or annual results, but news about an Illinois jury having ordered Mead Johnson – a subsidiary of Reckitt Benckiser – to pay $60 million to the mother of a premature baby who died after being fed the Enfamil baby formula produced by Mead Johnson.
And in my opinion, it is a huge problem that Reckitt Benckiser can tell investors that many cases had been filed against the company, but management is not able at this point to state a precise number of cases related to the safety and marketing of the Enfamil baby formula.
It seems like over 400 cases had been filed with the Chicago federal court, but there might also be cases involved that were filed against Abbott Laboratories (ABT) – the other major producer of baby formula for premature infants, which is also based in the Chicago area. And not surprisingly, Reckitt Benckiser is strongly disagreeing with this verdict and will try to fight it. Management is also expecting that some of the additional filed cases will be dismissed in a preliminary stage. Nevertheless, it takes only a few cases with a similar verdict (to pay $60 billion) to generate a huge financial damage to the company.
Reckitt Benckiser reported mediocre full-year results for fiscal 2023 as well as a mediocre guidance for fiscal 2024.
Aside from the results, Mead Johnson - a subsidiary - had to pay a $60 million dollar fine and investors obviously fear more lawsuits to come.
The stock is probably undervalued but at this point, we should be rather cautious about an investment.
In November 2023 I wrote my last article about Reckitt Benckiser (OTCPK:RBGPF) and I stated my optimism for the long run. And while we can certainly argue that four to five months is not really “the long run”, the stock performed horrible since my last article.
In the last few weeks, two major news stories seemed to have a big influence on the company and also on the stock price – the reported annual results for fiscal 2023 and the litigations about the infant formula of Mead Johnson (a subsidiary of Reckitt Benckiser). I will provide an update in the following article and assess if Reckitt Benckiser is still a good long-term investment despite the recent developments. At least the stock is now 20% cheaper than at the beginning of November 2023.
Annual Results
We start by looking at the last annual results, which were reported at the end of February. And although the results were not a complete disappointment, they were not great either. Revenue increased slightly from GBP 14,453 million in fiscal 2022 to GBP 14,607 million in fiscal 2023 – resulting in 1.1% year-over-year growth. And while this is a rather low growth rate, like-for-like growth was 3.5% for fiscal 2023 with volume declining 4.3% and price/mix increasing 7.8%.
However, operating profit declined 22.1% year-over-year from GBP 3,249 million in fiscal 2022 to GBP 2,531 million in fiscal 2023. And finally, diluted earnings per share declined from 324.7 pence in the previous year to 228.7 pence in fiscal 2023 – resulting in 29.6% year-over-year decline.
While operating profit and earnings per share declined, free cash flow increased from GBP 2,031 million in the previous year to GBP 2,258 million in fiscal 2023 – resulting in 11.2% growth. And as free cash flow is one of the most important metrics for any business this is actually good news for the business. Free cash flow especially increased due to a higher conversion rate – instead of 83% in fiscal 2023 it was 97% in fiscal 2023.
We can also look at the three different segments. The problem child remains to be Nutrition – at least when looking at year-over-year growth rates. But for the nutrition segment we still have to keep in mind the supply issue in 2022, which was a huge tailwind for Reckitt Benckiser. During the earnings call, management commented:
In Nutrition, we see a combination of the rebasing in U.S. and North American volumes following the competitor supply issue in 2022 and some market volume weakness in developing markets and I am going to go into that in a little bit more detail in a few more charts.
What does the article say, please? Am not subscribing.
Started: Ken23, 27 Mar 2024 05:07
Last post: y11-shx, 29 Mar 2024 08:01
I sold yesterday at a nice profit. If this drops to 40 I will be back in.
A 15% rise isn’t worth the risk. In my opinion,
I’ll buy if we go sub £40. Otherwise there’s better out there
It all depends on the hundreds of court cases in the US. If you know none of them will find against Mead-Johnson then I understand your confidence.
Ive bought in big at this cheap price. easy 15 percent rise over the next few weeks.
Yip … and with a third tranche of buy backs , plus director buys. Drop well overdone in my opinion
Started: LuckyBear12, 26 Mar 2024 08:08
Last post: LuckyBear12, 26 Mar 2024 08:08
USA is good at , controlling outside companies, there are 100 of pharma companies in USA, which are not even heard off with any cases
Started: driftking27, 20 Mar 2024 13:00
Last post: AbjectPerformer, 26 Mar 2024 04:37
Waiting for sub £40
No. The worrying thing will be if the appeal takes longer to sort than all the other cases piling up.
Has anyone read anything about next steps and timings regarding the legal proceedings?
NatWest dropped like a stone because Nigel farage spat his dummy out .
Compare that to implications of this.
Thank god I wasn’t in this stock compared to the collection of travesties I own .
I shall gladly pick up some of these after they plummet further. Those of you suffering holding this one since the drops, take solace in the fact that when it bottoms out, you own shares in a great company, that will undoubtably recover. And I will be alongside you, on the way back up. Good luck
£35 would be a nice entry lovely jubly
Started: Hardboy, 22 Mar 2024 07:35
Last post: Hardboy, 22 Mar 2024 07:35
With this big drop in share price they'll be able to buy a lot more shares in their buy back programme!
Last post: driftking27, 20 Mar 2024 13:02
Don’t be buying any yet, we need possitive news to start and see a bottom appear in this graph. This could continue down to
Might buy a few in here when it drops even further. Nice and tasty cheap as chips!
I was recently thinking about investing here... perhaps it's as well I didn't...i don't know how the SP will fare going foreward but this case will cast a cloud over it.. rightly or wrongly.. and whilst it looks tempting to buy now I have decided to leave well alone and look elsewhere..
Started: easyinvester, 29 Feb 2024 07:46
Last post: solomonkane, 20 Mar 2024 11:56
Interesting perspective - however my understanding is the case was against Mead Johnson USA- the subsidiary - hence would the jury not have thought the defendants were American
On a separate issue, my former wife gave birth to my beautiful twin daughters in Santa Monica in the late'80s. As is usual for twins, they were premature, by slightly over a month. From the moment her pregnancy was confirmed until my daughters were walking, the pre and post natal care was exemplary. Of course, it was stressed that breast milk is the ideal nutrition, but many mothers, especially with multiple births, with the best will in the world, struggle to produce sufficient milk. But new-born babies and especially pre-matures need nutrition, and if the mother is struggling, formula is pretty much the only option. My girls seemed to favour Enfamil, so that's what they lived on until they could tolerate cows' milk. My point is - infant formula is not breast milk. Everyone knows it's a compromise. It's down to the paediatric team to indicate and monitor its use, especially in compromised babies. If there is a case to answer, it should be focussed on the care protocols, not the highly researched and developed product which has undoubtedly saved millions of young lives over the decades.
Guird - You are quite right. American jurors absolutely love to 'stick it' to non-American companies who have the temerity to trade in their markets, failing to comprehend the contribution to their economy in terms of employment and taxes. As you mentioned, this was demonstrably the case regarding the treatment of BP. I was living in southern Alabama when the Deepwater Horizon event occurred , and my partner and I drove down to the gulf several times to see what was going on, over the course of a few months. In the early stages, there was a terrible smell, but not once did we actually see any oil on any of the beaches. However, the locals, with the backing of their representatives were having an absolute field day. They had political backing right up to the Oval Office, with Barrack Obama making some highly inflammatory comments. You wouldn't believe the number of businesses (tourism, restaurant, fishing) which were completely revamped on BP's coin, and then some. No-one would deny that BP screwed up royally (well actually their subcontractor, but..) and they did need to be held responsible - but the claims and litigation were distinctly anti-British.
Now with respect to Illinois, I think it has one of, if not the largest 'Irish' population outside of Ireland. When I worked in NYC, the IRA would hold fund-raising events right outside my office on Madison Avenue, with the support of both the average American office worker and the authorities. Americans' definition of terrorists is very flexible. The fact that the Illinois jury awarded more than double the plaintiff's claim speaks volumes. I'll leave this here...
Doing business in the US as a UK company is full of risk , look at BP and the 50bn hit they took over the years , it’s not a level playing field in the courts out there , take a look at Boeing , do not see them in court and there is a lot they have got wrong, very worrying for Reckitts
Isolated case?
They will appeal anyway.
Started: LGO-fan, 19 Mar 2024 13:39
Last post: LGO-fan, 19 Mar 2024 13:42
In 1999. As argued here at the time, the Mead deal looked like a bad case of a chief executive trying to buy growth at a moment when the revenue line was temporarily sticky.
On the day the takeover was announced, Reckitt’s share price was £71. Now it is £45.75, the lowest since 2013. Not all the woes can be pinned on Mead – margins elsewhere have also been a problem – but its distraction factor has been immense. The soon-to-be chair Sir Jeremy Darroch, a former BSkyB boss, will have to explain to frustrated investors why Reckitt deserves to exist in current form: the brands in both the hygiene and health divisions wouldn’t struggle to find buyers.
Reckitt – who knows? – may yet escape its litigation battle with minimal or tolerable financial impact, which is how life seems to be turning out in the US for GlaxoSmithKline with its heartburn drug Zantac. But Monday’s modest 2% bounce in Reckitt’s shares reflects the new mood of heightened uncertainty. Neither moral of this tale counts as new. First, when previously successful companies engage in bet-the-farm acquisitions, shareholders should ask more questions. Second, don’t pay the chief executive £97m before his handiwork can be judged.
High risk guys - be aware
He worst acquisition by a major UK company in the last decade? It’s hard to think of a deal that beats Reckitt Benckiser’s $18bn purchase in 2017 of Mead Johnson Nutrition, a US-listed maker of baby milk formula. Shares in the Dettol-to-Durex group have never recovered from the shock. By way of add-on award, Rakesh Kapoor, Reckitt’s chief executive back in the day, can probably scoop the prize for most overpaid FTSE 100 boss of recent times: he departed two years after his fateful piece of deal-making having been paid the astonishing sum of £97.6m during his eight years in charge.
The latest example of Mead Johnson’s dreadful legacy was Friday’s news that a court in Illinois awarded $60m in damages to a woman whose premature baby died in intensive care after consuming the company’s Enfamil formula; the allegation was that Reckitt failed to warn adequately that feeding with infant formula increased the risk of necrotising enterocolitis (NEC). The verdict knocked 15%, equivalent to £5.4bn, off Reckitt’s stock market value as investors tried to guess what could follow from 400-odd similar NEC-related cases involving Mead and its US rival Abbott Laboratories.
Reckitt stands by the safety of its products and will appeal in Illinois, arguing the jury verdict was “not supported by the science or experts in the medical community”. Management spent Monday trying to reassure the City. But, as so often with US legal cases, outsiders take little for granted in the early stages. Barclays analysts think Reckitt’s appeal chances are “reasonable” and that £2bn of damages would be an “absolute worse case”. Over at Jefferies, they opted for imprecision and said the risk is anywhere between zero and £8bn-plus.
Investors are making a fortune from UK healthcare. Why is nobody holding private equity to account?
David Rowland
Read more
For the time being, then, Reckitt as an investment is a play on litigation risk. Management’s narrative about “rejuvenation” and higher profit margins from brands such as Cillit Bang and Finish has become the secondary story.
It would have been different without Mead Johnson. The 2017 deal looked overpriced at the time since Reckitt was paying about 29 times earnings, and it demonstrably became a waste of money when Kapoor’s successor announced a £5bn writedown on the carrying value only three years after purchase. That mostly related to the Chinese operation where Reckitt had to admit it overestimated birthrates and consumers’ loyalty to local brands; it sold the unit on cut-price terms a year later.
Kapoor’s mistake was to rip up Reckitt’s previous winning strategy of bolt-on purchases that could be slotted smoothly into the sales machine. Nurofen painkillers and Durex condoms arrived that way under old boss Bart Becht, who (aside from being paid megabucks himself) turned the old Reckitt & Colman into a sensational stock market performer after merger with Dutch firm Benckis
Started: Hardboy, 16 Mar 2024 08:20
Last post: LGO-fan, 19 Mar 2024 13:33
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https://www.ft.com/content/e7945b3d-05df-43c0-86ab-2da360729d39
Barclays concluded a realistic worst-case scenario was a few thousand plaintiffs settling in “the high hundreds of thousands of dollars per case”. An extreme worst-case scenario they calculated would result in £2bn of damages.
Your right so many companies listed many doing good but it’s a gambling stock that’s top share price that’s messed up this is a light hearted dig not meant to over serious but true
Driftking27 "We live in a messed up world ‘Clued ‘ just have to accept this sub standard quality of life."
I certainly realise that the current World is messed up and have to accept things on one level, but I
don't find shoddy careless, even
negligent, mistakes like the
USD60b reported by Reuters
instead of USD60m acceptable. If someone erred like that working for me they'd have to have a very good explanation to keep their job. This error has probably crashed the price by multiples more than it should have and caused many stop losses to trigger thus causing exagerated financial losses. The more that these errors are simply "accepted" without negative consequences for those who make them, then the lower that standards fall as we see in society generally. Even Kate Midleton was caught posting a 'fraudulent' photo of herself and children, and I accept well intentioned and in itself not that important, but it has started a huge debate on what is fake and what is not after Reuters, who also made the mistake here !!!, asked for the Royal photo to be withdrawn !!
RKT has another 400+ cases behind the USD60m awards one so could be 400 x USD60m .... ???
Another GSK-type scenario ?
Apparently it's being looked into why 60 billion instead of 60 million fine was reported. Bots exacerbated the drop. All a bit naughty, hedge funds at it?
Glad I topped up at 4300p on Friday. Going back up to 5000p+ tomorrow.
Started: easyinvester, 17 Mar 2024 12:42
Last post: ROCKETVI, 17 Mar 2024 19:53
Didn`t realise the case was from years ago. What cause did the death certificate state ? I dont believe it woud say NEC due to feeding of toxic babymilk. Unfortunate that the baby died, but this is nature and not all survive. Cant see hospitals stopping feeding premature babies with this formula as it save a lot of early babies lives. I would be questioning the Judge`s ability more than anything as this case is one sided. See what the appeal comes up with as it is a worldwide issue for baby milk manufacturers.
I think you know what I meant to say-the first line could do with tidying up such as "we know now that the 3 week old baby that died was one of twins born at 32 weeks"
The earlier reporting seemed to indicate that this was maybe a sole birth?
Cheers
Apparently one of the twins died; the other is now 4 years old and presumably OK. Whilst the article in the ST doesn't give all the facts it stated that the births happened at 32 weeks (8 weeks preterm).
The babies would have had to remain in hospital until they were deemed OK to go home. The formula was obviously given to them whilst in hospital.
The (weaker?) twin died after 3 weeks with NEC. I'm not a medic but the assumption has to be that at this point at what amounted to 35 weeks out of a 40 week normal pregnancy term both babies would still have been under the medical supervision of the hospital/s. I'm wondering given that NEC has been known about for yonks why the medics haven't also been sued?
Keep trying to post but keeps crashing on me but after speaking again in-depth with my daughter no way NEC caused by milk formula. My now 13 year old beautiful tall strapping granddaughter is proof mead Johnson formula works she would have and did nearly die today she’s out horse riding NEC is what you develop or more often born with not caused by milk no matter brand as for the crash well it happens but personally don’t think it should have think RKT must have had poor legal team or though they’d win and not put to much effort in to lose all I’ve got say is thank you otherwise I wouldn’t have my beautiful granddaughter Olivia so thanks mead Johnson
Started: driftking27, 16 Mar 2024 13:09
Last post: driftking27, 16 Mar 2024 13:09
Just remember, this food formulae has been sold not just a year or two, but since 1959
Enfamil, introduced in 1959, has undergone several significant formulations — each one designed to optimise nutrition. With over a century of innovation behind it, Mead Johnson Nutrition strives to be the world's leading provider of science-based paediatric nutrition products.
Started: driftking27, 16 Mar 2024 13:06
Last post: driftking27, 16 Mar 2024 13:06
Some group, fund feels confident after placing a big order at £34m at after hours.
Has to be a BUY, as they would’ve seen so plummet.
Hopefully as others have said this will leap back up on Monday.
17:55:15 4,486.00 747,925 Unknown* £34m
Started: FALCONER-FLYER, 15 Mar 2024 15:35
Last post: driftking27, 16 Mar 2024 13:02
Thought FF would be either jetting of to Dubai or racing around in their Ferrari than on here haha
GLA
Driftking27 - I think old FF is about as good at sums as he is with writing English...
You bought 15000 ? When
That’s roughly £630k worth at todays value
If you had that sort of dough, you Wouldn’t be on this message board posting this short message
"This case, and others like it, exclusively involve products used under the strict supervision of neonatologists"
If that's the case then surely it is the prescribing neonatologist who is at fault.
With less than 1% traded , and a few £B wiped of the MC ....I don't think the ii's are taking it too seriously.
Unfortunate as it is , I see this as an isolated case.
Started: meshtrader, 16 Mar 2024 08:16
Last post: meshtrader, 16 Mar 2024 08:16
The former CEO destroyed the company
Started: LGO-fan, 15 Mar 2024 19:18
Last post: Mulder, 15 Mar 2024 22:38
Some very dumb people in Illinois it seems.
Plenty of people have tried catching falling knives and most regret it.
Kudos to those who time it right. I’m going to keep tabs here until the dust settles.
GLA
There was slightly different case with Indivior in the US and at one point the sp fell 23p (or 230p after consolidation I believe) - People were spouting same rubbish that it will go under blah blah. Indivior sp currently c.1650p. I was about to press a button but didnt have the guts.
It’s a buying opportunity in future..
For now, I would leave this news to settle abd see what happens in 2months.
It’s not going bankrupt.
My stockbroker Rathbones have their Research team on it, and I’ll post any update I can in coming weeks ahead.
I only have 100 shares at £58.50
Consumer goods giant Reckitt has suffered a £7bn share price slump after it lost a US legal case claiming its baby formula contributed to the death of a premature child.
London-listed Reckitt’s share price plunged by the most in two decades and to its lowest point in more than a decade after an Illinois jury ruled Reckitt had failed to warn about the risks of necrotising enterocolitis (NEC) from its milk-based Enfamil brand products.
NEC is an illness that damages the stomach and tends to affect premature babies. Reckitt’s US subsidiary Mead Johnson Nutrition had been sued by Jasmine Watson, who claimed the baby formula caused the death of her premature baby.
FTSE 100-constituent Reckitt has now been ordered to pay Ms Watson $60m (£47m) after losing the case.
Ashley Keller, a lawyer for Ms Watson, said: “The jury’s finding confirms what Mead Johnson folks already knew – that its formula dramatically increases the NEC risk “This is the first verdict in the US, but won’t be the last, unless baby formula makers accept responsibility for their misdeeds.”
News of the decision sparked a near 20pc plunge in Reckitt’s share price, wiping around £7.3bn ($9.3bn) from its market value.
It comes amid hundreds of US lawsuits against formula makers over NEC. The Illinois case was the first to go to a jury trial.
Shares in Abbott Laboratories, another formula maker facing legal claims, fell almost 5pc. Jurors took less than two hours to decide that Mead Johnson should pay $60m in compensatory damages. Mr Keller said: “We only asked for $25m, but the jury came back with more than double that.”
More than 400 suits targeting Mead Johnson and Abbott are consolidated before a federal judge in Chicago for pre-trial information exchanges. The judge hasn’t yet scheduled a trial. Thousands of other suits are pending in state courts, Mr Keller said. Reckitt continues to insist its products are safe and not linked to NEC. It has vowed to appeal the Illinois case.
NEC has a fatality rate of as much as 40pc. It is a major cause of death among premature babies, though rarely occurs in full-term babies.
The disease, which affects intestinal tissues, can be hard to diagnose. According to the NHS, symptoms can include general signs of illness, problems feeding or vomiting, and a swollen and tender abdomen.
While it has a high fatality rate, it can be treated with intravenous feeding and antibiotics. In some cases it can require surgery.
Reckitt said in a stock market update that it stands by the safety of its products and “strongly rejects any assertion that any of our products cause NEC”.
The company added: “It is important to note that this is a single verdict in a single case and should not be extrapolated.
“This case, and others like it, exclusively involve products used under the strict supervision of neonatologists in neonatal intensive care units and provide lifesaving nutrition options for
Started: driftking27, 15 Mar 2024 21:57
Last post: driftking27, 15 Mar 2024 21:57
Never looked at after hour buys on any share, but go and see the numbers going through.
(1720-1815) at 4480 - 5000p orders £60m worth in 6orders
Has to be buys, or coujd it be late lander orders from earlier in mornings?
The cause for NEC is unknown. Yet they argue that Enfamil or Similac cause NEC?
There is only correlation that for babies who are born prematurely or who are weak or underweight the prevalence of necrotizing enterocolitis is more common.
This appears to be the case when babies are fed exclusively these products. Is it not more likely this condition emerges due to lack of proper nutrition from mother milk!? why should they put a label on a product made for babies:"INCREASES THE RISK OF NECROTIZING ENTEROCOLITIS" . No sane person would buy it.
And if its true then what kind of person/company would put it out ?
Started: easyinvester, 15 Mar 2024 16:34
Last post: driftking27, 15 Mar 2024 19:44
AGREE
Enfamil, introduced in 1959, has undergone several significant formulations — each one designed to optimise nutrition. With over a century of innovation behind it, Mead Johnson Nutrition strives to be the world's leading provider of science-based paediatric nutrition products.
I wouldn’t be a buyer at now.
Thus will continue to fall until possitive news comes out.
It’s a WATCH as this could be catastrophic . NO one knows
Over reaction from the herd. Managed to get some at 4300. This will open 4500 on Monday and go back to 5000. Remember we are talking US justice system who took women's right of abortion! Its ridiculous!
Ok not good! But just to my daughter who knows about such things things and has told me NEC is not caused by baby formula if the baby was suffering with stomach & bowel possibly formula irritating or made worse just like certain foods can do to us all my daughter would know she clued up due to my granddaughter very similar last 13 years from what she has said not possible hopefully RKT will challenge and not just give in not withstanding and feeling for the child & family
Started: LGO-fan, 15 Mar 2024 17:51
Last post: LGO-fan, 15 Mar 2024 17:51
"https://www.hl.co.uk/shares/share-research/reckitt-us-infant-formula-unit-loses-court-battle"
Reckitt, through its US subsidiary Mead Johnson, has been ordered to pay $60mn by an Illinois court in a case against its infant baby formula. Mead Johnson has said it would appeal the decision.
There are in the region of 160 further lawsuits relating to similar issues that are still pending.
Reckitt has not previously set aside any specific provisions in anticipation of losing these cases.
That is the real issue: if RKT didn't set aside any financial provisions, and you understand II avoid risk, than no wonder this is being dumped.