August 5, 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 industrial auctioneer Richie Bros. Auctioneers (NYSE: RBA ) fell 10% today after the company released earnings.
So what: Revenue was well short of the $120.3 million analysts estimated and only hit $114 million. Earnings per share were just $0.02 less than estimates at $0.25.
Now what: In a market like we have right now any disappointment is going to send shares reeling. Competitive pressure and lower prices for certain products were to blame for the weak results, and management sees more of the same in the future. I don't think today is a buying day and would like to wait until things settle down before grabbing shares.
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