Invacare Shares Got Crushed: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Invacare (NYS: IVC) fell more than 25% on heavy volume after revealing that the Food and Drug Administration is proposing sanctions that would temporarily shutter some operations. The company says it will pursue talks with the agency in an effort to resolve the matter.
So what: According to a company press release, the FDA has issued a consent decree relating to previously observed violations at Invacare's corporate headquarters and a wheelchair-manufacturing facility in Ohio. Regulators are seeking an injunction until the violations are addressed.
Now what: The news comes at an awful time for Invacare, which had been building a national network for renting equipment for long-term care. Now those plans may have to be put on hold. Do you agree? Would you buy shares of Invacare or any of its peers at current prices? Please weigh in using the comments box below.
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