China Automotive Shares Plunged: What You Need to Know (CAAS)

China Automotive Shares Plunged: What You Need to Know

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

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 automotive-parts manufacturer China Automotive Systems (Nasdaq: CAAS ) drove into a ditch today, falling as much as 12% in intraday trading on heavier-than-average volume.

So what: The most recent news out of China Automotive was the May 19 announcement that it had received a second delisting notice from Nasdaq after the company failed to file its 10-Q for the first quarter of 2011 on time. This followed a previous delisting notice after the company didn't file its 2010 10-K filing on time. While that news should be well digested by investors at this point, an article from TheStreet.com today listed China Automotive among "26 Small-Cap Stocks in Danger of Delisting."

Now what: The snafu at China Automotive shouldn't have investors too shaken up at this point -- the filing delays are due to noncash accounting adjustments that the company needs to make on its treatment of its convertible notes. However, investors have very itchy trigger fingers right now when it comes to Chinese small caps. Considering that stocks like China MediaExpress and RINO International have been delisted for very worrisome reasons, pairing China Automotive's name with the word "delisting" may have been enough to send a shudder through shareholders.

Want to keep up to date on China Automotive Systems? Add it to your watchlist.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.