Saturday, March 24, 2007

Investors to Menu Foods: Keep That Poison Coming!

You'd think that a food company which has been found with poison in its factory would be in some financial trouble. You'd imagine that, if said company were publicly traded, investors would run away screaming on the day that investigators annouunced that rat poison had been found in its products.

Well, think again, because Menu Food's stock price rose by 30.8 percent on the "good news" that rat poison was found.

This means that somewhere large institutional investors were sitting around their computer terminals reading stories about aminopterin, about class action lawsuits being filed against Menu Foods, and about the company promising to pay veterinary costs for thousands for people. The investors' response: buy, buy, buy!

I'll never understand Wall St. I guess the going theory is that, because a toxic agent has been identified, the company's troubles are over and it's a good time to buy. Nevermind that every dollar you invest is seen as a vote of confidence and a ringing endorsement of company policy. Nevermind that by investing in Menu Foods, you are asking for more of the same.

1 comment:

Book and Hook said...

I don't have a pet yet, but I am a pet lover and what they have done and are getting away with flabbergasts me. I am glad that you are posting again, but not for the cause. Thank you for keeping us updated on what is going on, and what menu foods is claiming.