Yesterday's drop was due in part to some news that the cost of the recall was to be $35 million wasn't it?
The way i see recent price movements is: - fall due to announcement of recall - fall due to announcement of return of competition - slight increase due to shift to defensive stocks when global economic uncertainty was high - fall due to general market movements - (yesterday, fall at opening due to report of possible $35million+ cost of recall & six month 'return to market')
In conclusion what's been happening is that Cochlear's share price took two huge hits (and one minor hit yesterday), and is simply trading on general market conditions otherwise.
Of course if you are trading short term then technicals are really exciting, but for the general long-term punter, absent of any catastrophically negative news from Cochlear, this is still a good buy. What you are punting on is that Cochlear can get their act together and minimise the damage of this recall. If you believe they will do so, then buy/hold. Otherwise, stay out until you have better news.
COH Price at posting:
$45.77 Sentiment: LT Buy Disclosure: Held
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