All after plunging nearly $8.50 on Friday following its recall of a single lot of Johnson’s Baby Powder.
The recall was “out of an abundance of caution based on the results of a U.S. FDA test that found “sub-trace levels” of asbestos contamination in a bottle of its baby powder, said the company. However, JNJ cannot confirm if cross-contamination caused a false positive with sample. It cannot confirm if the sample was taken from a bottle with intact seal, nor can it confirm if the sample was prepared in a controlled environment.
A falling knife may soon lead to opportunity, as the stock slowly rebounds.