Oh the good ‘ol boys at StockLemon.com took a fat shot at Medifast. If you track StockLemon, then you know whatever this site publishes has a huge effect on a stock’s price. Anyway, StockLemon was right on again, pointing out that Sanofi-Aventis EU approval for obesity drug Acomplia occurred just hours ago. Who are these guys? How do they get in on the news so fast?
Medifast currently is down over 20%!
But the arguments were not as harsh as usual. StockLemon didn’t talk about any scandals occuring within the company, but talked about a much lesser evil… competition (ie, a diet pill vs packaged foods). So is MED a bargain now? It hasn’t been a bargain for a while! This was a pure growth stock, with appreciation fueled by future earnings. So the guys at StockLemon hit MED in a vital spot. Currently there are more sell orders than buy orders, so even the overall market doesn’t think MED is a bargain after a 20% plunge.
And in a matter of hours, I myself have to downgrade this stock from bullish to bearish.
Joined Jul 30, 2008
2,107 Blog Posts
