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 shoemaker Collective Brands
So what: Weak customer traffic has been weighing on Collective Brands, but its plan to close roughly 475 underperforming stores in the next three years should certainly boost results. More importantly, management's bigger picture decision to look into "strategic and financial alternatives to further enhance shareholder value" has triggered speculation that an asset sale, or a sale of the company outright, is a real possibility.
Now what: Don't let this rally prevent you from at least looking into the stock. Even with today's big surge, Collective Brands is still down about 45% over the past six months and continues to trade at a forward P/E discount to rivals like DSW
Interested in more info on Collective Brands? Add it to your watchlist.