Comment by chii

Comment by chii 3 days ago

There was a case of food contamination in a fast food joint (can't remember which, let's say it was burger king). The stock fell as a result, but recovered relatively quick afterwards - you would've made bank buying it low.

The thing is, individual, one off events usually don't break a company, but the stock falls temporarially as a result of some people expecting it to. Of course, it's possible that one event breaks a company, and this is the risk you do take buying it low after the event.

fakedang 3 days ago

> There was a case of food contamination in a fast food joint (can't remember which, let's say it was burger king). The stock fell as a result, but recovered relatively quick afterwards - you would've made bank buying it low.

I think this was some years ago and it was Chipotle. They had to remove some menu items altogether IIRC.

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int_19h 2 days ago

It's a recurring thing. Back in the 90s it was Jack in the Box (https://en.wikipedia.org/wiki/1992%E2%80%931993_Jack_in_the_...)

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bruce511 3 days ago

Exactly. There's news every day. It takes a lot of bad news to break a company.

And frankly unless it's criminal (Enron, Theranos etc) it's not a big deal. An oil spill here, a data leak there, these are not things that affect customer behavior.

The market is only interested in results. It doesn't care about the news. Those stock dips you see are uneducated emotional investors making bad decisions for the wrong reasons.

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