Shares drop for nutrition product company, Mead Johnson Nutrition CO(MJN) on news of Hong Kong regulation of milk products.
Shares of MJN were down -5% in the pre-open trading following a regulation which was put in place by the Hong Kong government, which will limit the amount of milk products from outside the territory in the region. Approximately 30% of the company’s sales are obtained in the China/Hong Kong region.
The regulation limits the amount of milk products transported between Hong Kong and China. It will be Effective March 1, 2013. Travelers between the territories will be permitted to bring 1.8 kilograms, or 32 ounces of milk formula when they travel with children up to 36 months of age.
As of now, the company has not made any adjustments to their earnings guidance.
Mead Johnson shares were mostly flat during premarket trading Monday. The stock has been mostly flat in the last year.
The Bottom Line
Shares of Mead Johnson Nutrition CO(MJN) have a 1.52% yield, based on Friday’s closing price of $78.96.
Mead Johnson Nutrition CO(MJN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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