June 9, 2011
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 Forestar Group (NYSE: FOR ) jumped 12% today.
So what: Management decided not to go forward with $250 million in debt offerings because terms were not as favorable as expected. The offering was opportunistic, so this won't hurt ongoing operations.
Now what: The market was disappointed with news of the offering when it was announced May 31, so today's move is a sigh of relief. Shares have been on a slide since early May, and today's bounce is welcome news for investors. Before that announcement, shares were trading for about $18 per share, so we may still have room to run.
Interested in more info on Forestar Group? Add it to your watchlist.