More Reputational Effects

Mattel is announcing today the recall of 9.58 million more toys due to safety issues, following the recall two weeks ago of 1.5 mm.  On Monday an executive for a Chinese manufacturing company working with Mattel committed suicide. 

Mattel stock seems to be holding up reasonably well.  It is down -2.4% today, and has been a weak performer with the Consumer Discretionary sector over the past month, but has actually outperformed the market over the past five days.  So initial impact seems contained - it will be interesting to see what happens on their next earnings release.

(Note - These are just my observations on the market's reactions to recent news...  I don't own MAT, haven't analyzed it, and have no opinion on its investment merits...!)