AsiaInfo-Linkage Shares Plunged: What You Need to Know

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: A week after plunging as much as 25% on disappointing guidance, shares of  AsiaInfo-Linkage (Nasdaq: ASIA  ) fell as much as 16% in early trading and stayed down much of the day, closing off 13.7%.

So what: It's hard to say exactly what spurred the selloff, but it's worth noting that, over the past quarter, AsiaInfo-Linkage had become a favorite buy among institutional investors seeking Chinese names. Perhaps poor guidance has enticed Big Money managers to flee the stock?

Now what: Yes, I'm speculating, but I also don't see another explanation when most Chinese names rallied during another topsy-turvy day for the broader market. Do you agree? Disagree? Weigh in using the comments box below.

Interested in more info on AsiaInfo-Linkage? Add it to your watchlist.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn’t own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

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