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 zinc producer Horsehead Holding
So what: The big news on Horsehead today is a fresh debt offering. The company aims to raise between $80 million and $100 million in convertible (read: dilutive) notes to finance the construction of a new zinc-mining facility. Investors seem to be focusing more on the dilutive effects of the offering than on the potential business growth therein.
Now what: This is not the first time Horsehead shares moved in the opposite direction of what looks like good news. The crash makes some sense; one of this five-star CAPS stock's main attractions was its squeaky-clean balance sheet, which won't be the case anymore. Still, this longtime Motley Fool Hidden Gems recommendation has treated investors very well over the last year, with a 47% gain even after this recent drop, beating peer US Ecology
Interested in more info on Horsehead Holding? Add it to your watchlist.