October 19, 2010
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: Shares of ICO Global Communications (Nasdaq: ICOG ) fell more than 10% in intraday trading on low volume. ICO purports to combine satellite and terrestrial network technology to offer wireless voice and data services to customers.
So What: The wire services offer no clue as to the sell-off. ICO's latest news involved sweeping changes to the composition of its board of directors, enacted last week. The best explanation for the drop is that, on a down day, thinly traded stocks such as this one tend to take a beating.
Now What: While there doesn't appear to be any business reason for the drop, I'm not sure I'd want to own the business under any circumstances. Not only is the company unprofitable, but it's also embroiled in a legal dispute with its satellite supplier, Boeing (NYSE: BA ) .
Interested in more info on ICO Global Communications? Add it to your watchlist by clicking here.