Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Fuqi International (Nasdaq: FUQI ) shares are up nearly 20% today after it filed an 8-K with the SEC saying that 2007 and 2008 statements did not contain any adverse accounting opinion.
So What: This jump is after Fuqi shares plunged last month when the Securities and Exchange Commission began investigating the jewelry company's non-compliance with filing timely reports. Investors usually cringe whenever the SEC gets near a company, calling statements into question.
Now What: This doesn't officially get Fuqi off the hook with the SEC, and investors should be cautious with this move. I chalk this up to a random market swing in hopes that the big, bad SEC will back off Fuqi. This stock has gone through some wild swings in the past few months as investors try to understand why Fuqi isn't filing reports on time, and today is just another example. I am wary of any company being investigated by the SEC, so watch that you don't get caught in an avalanche if it finds something.
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