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 Chinese insurance company CNinsure (Nasdaq: CISG ) went on a crazy ride today shooting 11% higher in early trading before plummeting to down 5%.
So what: Shares bounced on news the company would be buying back $100 million of U.S. shares by June 30, but then the market got a little confused. Isn't this the same company that issued $115 million of shares just this past summer? Wasn't it supposed to use the cash for growth?
Now what: Operations look to be strong and shares popped just last week on news that the CEO and CFO would be buying shares, but something seems a little off with this company. At the risk of missing out on a growth story, I'm going to stay away from a company that looks confused about its cash needs. I've seen one too many Chinese companies with surprise announcements that bash the stock to take a chance on this one.
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