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 electronics manufacturer Fabrinet (NYSE: FN) are plunging today to the tune of 10% on rather ordinary trading volume.

So what: The company just announced a secondary offering of up to 6.9 million shares, which would dilute the share pool by about 20%. The stock isn't falling quite that hard because the new float is coming from "certain selling shareholders" rather than from the certificate-minting presses.

Now what: Fabrinet isn't in dire need of fresh cash, and shouldn't get any from this third-party offering. The only entity reported to own enough Fabrinet stock to come anywhere near backing this sale is former JPMorgan Chase (NYSE: JPM) subsidiary H&Q Asia Pacific, and JP is also underwriting part of the sale. This is an exit strategy after a very successful IPO that has given original shareholders a more than 160% return on their investment.

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