Saturday, May 14, 2016

How a Prospector Deals With PED Suspensions - The Case of Raul Mondesi Jr

This week Raul Mondesi Jr was suspended 50 games for testing positive for clenbuterol, an anabolic substance. If you had stock in Raul I would suspect that you are upset right now. A major league debut or promotion to AAA was right around the corner. So what should holders of Raul's auto's do next? In this case the best option would be to HOLD. Selling at this point would result in a loss in my opinion. According to the reports, MILB was going to issue a 80 game ban but Raul was able to negotiate a lighter punishment since he provided the source of the banned substance (cold medicine). It seems that it was an honest mistake but we can never be sure with these suspensions. Youth is on his side so if he comes back and puts this behind him profits can still be made. For prospectors who currently do not hold, this might be an opportunity to purchase some auto's at a discount price. Overall, this is just another reason why I try to avoid high end prospects. The impact on profits could be devastating depending on the situation.






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