1 Green Flag and 1 Red Flag for Masimo

Just when you think investing in healthcare companies might be the place for investors to hide out during a bear market, a company goes and does something that leaves more questions than answers. And when that happens, you get a sell-off caused by fear of the unknown.

This is what's happened to Masimo (NASDAQ: MASI) over the past three weeks, during which time the stock has slid 37% on the heels of a red-flag announcement. But can a green flag and a positive outlook pump a little oxygen back into investors' confidence?

Image source: Getty Images.

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Source Fool.com