CIRCOR International Shares Dropped: What You Need to Know (CIR)

CIRCOR International Shares Dropped: What You Need to Know

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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: Seems like everything is down today, but CIRCOR International (NYSE: CIR ) is down more than most -- 21% and counting.

So what: CIRCOR reported $0.44 per share in second-quarter adjusted profit -- more than 10% below Street expectations. Oops.

Now what: Adding insult to injury, the valve maker warned that the third quarter is looking pretty weak as well. Management is guiding toward about $0.52 per share, versus the $0.63 per-share profit that Wall Street has it pegged for. When you take all that and factor in the stock's high price (40 times earnings) and total lack of free cash flow (CIRCOR actually burned about $60 million over the past 12 months), I can't say I'm optimistic about CIRCOR rebounding anytime soon.

Are you feeling optimistic about CIRCOR? Add it to your Fool watchlist. See if maybe they can turn this thing around.

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?

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Fool contributor Rich Smith does not own (or short) shares of CIRCOR. The Motley Fool has a disclosure policy. Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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