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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 structured cabling specialist RiT Technologies (Nasdaq: RITT ) are caught in a 15.7% free fall today.
So what: The other half of this story is that these shares are still 46% more expensive than they were Monday morning. That sudden race may have been an extended short squeeze, seeing as how nearly 20% of the company's shares were sold short in mid-November.
Now what: This penny stock is actually up more than 650% over the past three months even after today's damage; it's easy to see why the shorts were piling on. RiT also illustrates the dangers of short-selling thinly traded and highly volatile stocks. Then again, it's also dangerous to buy them; this stock fell more than 40% in two separate three-month periods this year and could easily do it again.
Interested in more info on RiT Technologies? Add it to your watchlist.