Sherwin-Williams (NYSE:SHW) fell 17.82% today on very high volume. Today’s trading was largely the result of a Rhode Island trial jury verdict against Sherwin-Williams and two other former makers of lead paint. A fourth defendant was found not liable. DuPont had also been named in the suit; however, last year, Rhode Island agreed to drop DuPont from the lawsuit when the company agreed to make several million dollars in payments to various government programs and non-profit organizations.
Sherwin-Williams has consistently earned high returns on equity while employing relatively little debt. Investors looking for a bargain may want to research the company and follow the lawsuit. If Sherwin-Williams’ stock price suffers a substantial decline in the weeks or months ahead, expect a blog post from me discussing the company in greater detail.