December 2, 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: IT service company Camelot Information Systems (NYSE: CIS ) plummeted 10% today as the stock takes a breather after a recent hot streak.
So what: After shooting straight up for the past week, it's about time shares see a pullback in a down market today. Camelot has hit 52-week highs in the past three days, and investors are reassessing the current momentum of the stock.
Now what: Investors may want to be wary of pre-IPO institutional investors filing to sell more than 7 million shares of the stock and the subsequent run-up in shares. Something seems a wee bit fishy in the stock over the past week despite the fact the firm is still expected to grow rapidly over the next five years. I'll sit out today's move and wait to see what happens after the stock offering. I don't want to get caught in a trader's trap.
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