Investors are almost always willing to pay up for growth, particularly
when it's in a sector where growth can otherwise be hard to come by. But
Mead Johnson Nutrition (NYSE:
MJN)
shares seem to take that a little too far. There's no arguing that the
company's heavy exposure to faster-growing emerging markets is a big
plus, not to mention its strong share in what is effectively becoming a
global oligopoly. Even so, investors shouldn't ignore the risk of
further margin pressure and the possibility that they're paying too much
for these shares.
To read more, please follow this link:
http://www.investopedia.com/stock-analysis/2013/Mead-Johnson-Nutritions-Valuation-Looks-Bloated-MJN-ABT-NSRGY-DF0205.aspx
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