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 electronic security specialist Checkpoint Systems
So what: In a statement, CEO Rob van der Merwe cited "global economic uncertainty" and "unpredictable retailer behavior" in announcing plans to strip another $58 million from operating costs. Checkpoint's radio-frequency technology is typically sold to retailers for tracking merchandise.
Now what: Kudos to van der Merwe for taking action, but investors shouldn't applaud too much, or too loudly. Restructuring already cost $17 million in the current quarter. No one knows when those cuts -- or the cuts to come -- will allow Checkpoint to return to growth. What's your take? Would you buy shares of Checkpoint Systems at current prices? Please weigh in using the comments box below.
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