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The fact that a relatively small amount of product was affected, with minimal adverse health risks, likely contributed to this recall quickly blowing over with investors. But not every company is so lucky.

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In 1982, Johnson & Johnson issued a nationwide recall of Tylenol after seven people in the Chicago area died from capsules laced with cyanide. Even though the bottles had been tampered with, and Johnson & Johnson didn’t produce a faulty or dangerous product, the company’s stock price and market share plunged following the news. But according to The New York Times, within two months the painkiller was back on shelves and its stock price and market share had mostly bounced back. (2)

Whether a product recall causes short-term damage versus long-term damage can depend on the circumstances at hand, as well as the reputation of the company. If it’s a large, established business and the circumstances surrounding the recall are fairly minor, then any stock price dip that follows may be temporary. If the recall is more extreme, and more harm is caused, then the damage may be longer term. In the case described above, Johnson & Johnson’s recovery was attributed to its consumer-focused response of widely pulling its product and offering free Tylenol replacements in tablet form — a costly but seemingly worthwhile move.

If you’re someone who owns shares of Coca-Cola, you may wonder if investors would be rattled by a recall like the one that happened in October. But the reality is that product recalls are fairly common. The FDA, for example, frequently issues dozens of recall notices every month for a variety of reasons. So it’s no surprise a small product recall such as this one didn’t result in panic. The recall also was not a Class I recall, which is considered severe in terms of health consequences, and it only applied to a limited geographic area.

If owning shares of Coca-Cola fits your investing strategy, then you shouldn’t necessarily rush to dump them because of a single incident like this. Over the past five years, Coca-Cola shares are up around 42%. Furthermore, Coca-Cola has consistently raised its dividend for 63 years. (3) The fact that it’s been able to increase its dividend for decades indicates that it’s a stable business with a solid reputation. And a single recall is unlikely to change that.

That said, if you own shares of other companies that end up recalling products of their own, it’s important to pay attention to the specifics of the situation. Coca-Cola is a huge company and well-known brand, so it’s in a strong position to recover easily from a recall situation. A smaller or less well-known company may not have the same recovery, and the same holds true for more extreme recall situations.

It’s important to stay on top of the news when it comes to the stocks you own, and to be mindful of red flag situations. That said, selling after a recall isn’t always smart. Sometimes, stock prices can plunge without much warning, and selling could mean locking in losses. It can pay to wait out a recovery, even if it takes months or even years, especially if the company is otherwise fundamentally sound.

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TODAY (1; The New York Times (2); Coca-Cola (3)

This article originally appeared on Moneywise.com under the title: Coca-Cola recalled potentially contaminated cans. Investors didn’t blink — could the same scandal sink a small business?

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