November 16, 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: Zhongpin (Nasdaq: HOGS ) shares fell 11% during trading today after the company announced it will be expanding operations.
So what: The company will invest up to $62 million to build a meat processing plant in Changchun, China. The facility will also include a logistics center and an R&D center near the plant.
Now what: After a good earnings report last week, I would think this added facility and potential growth would leave shareholders excited. The momentum downward is striking today, so I might wait a while to jump into this stock. When it does settle down, though, this added facility should help fuel growth for Zhongpin going forward.
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