WBD stocks fallen significantly...will i be ok?

Question

Ticker symbol WBD has fallen significantly the past months, and i dont know why. Will they be ok, or are they going to be headed lower?

where can i read up more about this company besides its website, and YA finance?

Answer 1

WBD is a food production company that sells mostly dairy products.  The price of milk is going up due to the increased expense of feeding dairy cows.  And this may cut into the company's profits.

Russia is the main market for this company.  And Russia now has over 15% inflation rate.  Which is not good for the economy and the consumers.    

I'd say this company may loose profits because of increasing milk prices.  And this company may loose profits if the price of oil goes down a lot and Russian consumers will have less money to spend.

Perhaps this is too much risk for some investors and that's why they are selling now.   It's hard to say whether the stock of this company will go up or down from its present price.   And for me holding a stock like this would be a little bit like gambling.

WBD has just decided to suspend its annual dividend.  Which may disappoint some investors.  Perhaps WBD will go down even more, when the stock market opens next time.

http://www.rbcnews.com/free/200807041151...

Answer 2

Unless you think Russia is headed for collapse, IMHO you should hang on to it and quit looking.  About 40% of the shares are held either by insiders of institutions, two groups of folks who typically don't buy something they don't know something about.  And WBD have already rejected an "easy-money" take-over bid and stated they wish to grow by acquisitions...