September 1, 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 apparel maker Oxford Industries (NYSE: OXM ) rose more than 11% in early trading in what appears to be a case of seller's remorse.
So what: The stock briefly sold off yesterday when Oxford reported a 64% decline in second-quarter earnings and forecast a worse-than-expected Q3 earnings result. Management told analysts to expect $0.10 to $0.15 in profit in the current quarter, yet consensus estimates were calling for at least $0.15.
Now what: The decline was short-lived, however, and investors disappointed with guidance now believe the stock, priced at just over 15 times forward earnings, has more room to run. Do you agree? Disagree? Please weigh in using the comments box below.
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