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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 Chinese coal miner L&L Energy (Nasdaq: LLEN ) were looking sooty today as they slumped as much as 18% in intraday trading on heavier-than-average volume.
So what: The stock's dive today was driven by a post on blog aggregator SeekingAlpha alleging "accounting irregularities" at L&L. Specifically, the author highlighted formatting errors in SEC filings, what he believed to be insufficient disclosure about restated cash balances, and the tarnished record of the company's auditor.
Now what: The author definitely has a dog in this fight, as he noted that he's planning to enter a short position on L&L's shares. Of course L&L is certainly not a new target. Back in December of last year, CNBC's Herb Greenberg sent the stock reeling after raising concerns about its management team. Over the past six months, the stock has lost nearly half of its value.
As far as short cases go, this one is relatively mild and the market seems to be taking notice of that. After a hefty downward spike, the shares recovered substantially and are down 8.3% as of this writing.
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