The Rising Influence of Rising Affluence

[DewDiligence]

ABT -2.5% today (-4.5% this week) on reports that China is subsidizing domestic infant-formula companies:

http://www.ft.com/intl/cms/s/0/ab1739dc-25bd-11e3-8ef6-00144feab7de.html#axzz2fuCUVTWS

China’s action ought to be a WTO violation, but who is realistically going to stop it?

Infant-formula is part of ABT’s nutritionals business, which is its most profitable business segment. Fortunately, ABT derives a smaller proportion of infant-formula sales from China than such competitors as Nestlé and Danone; however, investors have tainted all three companies with the same brush.

All told, this is a good buying opportunity for ABT, IMO.