IPG Photonics 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: Shares of IPG Photonics (Nasdaq: IPGP  ) fell more than 13% in early trading on higher-than-average volume. A high-profile court case may be the cause.

So what: No specific news dominated the feed, but this week marks the beginning of a jury trial in which it must defend against patent-infringement claims made by competitor IMRA America. A judge in March denied IPG's request for summary judgment in the case.

Now what: Ongoing, expensive patent tussles seem to be the New Normal in tech. Here, IPG's dominance of the high-growth fiber laser market is at stake. Today's selloff suggests that at least some investors are hedging their bets. Do you agree? Would you buy IPG Photonics' stock at these levels? Please weigh in using the comments box below.

Interested in more info on IPG Photonics? 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.

The Motley Fool owns shares of IPG Photonics. Motley Fool newsletter services have recommended buying shares of IPG Photonics. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (4) | Recommend This Article (10)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 29, 2011, at 8:01 PM, ryanman000 wrote:

    Tim,

    I found that this short article created more questions than it answered. I was surprised to see that The Fool sold its position in IPGP judging by the disclosure.

    I took the liberty of doing the research myself and was very surprised by what I found. So much so, that I drafted a post on the topic, which I thought would be appropriate to link here.

    http://marketbreach.com/2011/09/29/ipgp-vs-imra-america-laws...

    -Ryan

  • Report this Comment On September 29, 2011, at 9:19 PM, Mkbrown2000 wrote:

    So did the Motley Fool sell it's position in IPGP today? I'm a longtime Rule Breaker subscriber and a little thrown by this. Ryan's info/analysis above is great. I haven't seen any Motley Fool involvement on the IPGP discussion board about this either. Seems like this surprised you all and I'm not sure why. Wish I had had this info earlier, added to my IPGP recently, probably wouldn't have knowing this.

  • Report this Comment On September 30, 2011, at 12:16 AM, capitalgorilla wrote:

    Very nice comment, the only one(s) together with Ryan that mention more than chart-stats, supports etc. I'm a fan of understanding both the market sentiment and fundamental backgrounds and it seems the lawsuit maybe a serious one.

    IPGP was my first Rulebreaker I bought into , a 3-5 bagger. Thanks again!

  • Report this Comment On September 30, 2011, at 9:05 AM, TMFMileHigh wrote:

    Ryan, et al --

    My apologies. I accidentally omitted the part of the disclosure that says the Fool owns shares (which it still does).

    I've sent a note to the editor and the text should be re-inserted this morning. Terribly sorry for the confusion I caused.

    Foolish best,

    Tim (TMFMileHigh and @milehighfool on Twitter)

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