No.
Well, probably not.
News broke over the weekend An isolated number of Hepatitis A cases in Victoria and NSW that had been linked to frozen berry products imported and distributed by Patties under it's Nanna's brand. Of course some reaction to this sort of news is to be expected, and the stock was hit hard early, down as much as 17% on last Friday's price in trading today.
It has rebounded to $1.27 at close of trade today, about 7% below it's Friday price (Interestingly enough right about what we paid for it.) Including the dividend paid last year, we're still slightly ahead on our Patties investment since purchasing last year, though we'll certainly be keeping a close eye on this news as it develops.
Nanna's represents a small, but not meaningless aspect of the Patties Foods business. The company has released a statement, saying earlier today:
"It is too early at this stage to ascertain whether the product recalls will have any financial impact on the company"
We're not going to panic and sell, and in fact it's hard to see a situation where a problem isolated to a small corner of the business would change our thesis. But we're certainly going to be keeping a close eye in the weeks to come.
