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: For the second time this week, data storage specialist Quantum
So what: The analyst upgrade that sparked last Friday's big move appears to have hit a nerve, as trading volumes in Quantum stock have stayed unusually high ever since. The stock has been on a rampage for the past month or so, and market momentum can carry prices a long way.
Now what: Quantum's trailing P/E ratio of 75 looks extremely expensive, but the forward-looking version of the same metric is a value-steeped 8.4, and it's easy to see how this dichotomy fuels some extreme price swings, as tends to be the case when investors don't know what they're looking at. Like storage rivals Hitachi
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