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 hotel operator 7 Days Group Holdings
So what: Revenues increased 41.4% to $66.5 million, but that hasn't translated to profits like investors were expecting. Net income swung from a loss last year to a profit of $3.3 million in the quarter, or $0.07 per American depositary share, but that was still below the $0.13 analysts expected.
Now what: The Chinese company is adding hotels at a rapid pace, with a net 107 additions in the quarter, but profit is proving harder than expected. The swing to a small profit is nice, but with a $956 million market cap, a $3.3 million profit isn't going to cut it. I am selling today's move and want to see some financial results before buying into this stock.
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