November 28, 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 Quad/Graphics (Nasdaq: QUAD ) closed up more than 16% on the same day shareholders were paid $0.20 in dividends per share. The printing company enjoyed similar rallies last week and in September.
So what: Volume was up slightly in what looks like a flight to Quad's meaty 5.6% dividend. While that makes sense on one level -- dividend stocks have proved popular among investors troubled by lousy economic data -- peer Consolidated Graphics (NYSE: CGX ) , a non-payer, enjoyed a 12% gain.
Now what: Big Money interest unites them. Superinvestor John Paulson has already opened a position in Quad/Graphics while the Fifth Third Micro Value (FUND: MXAIX ) had upped its interest in Consolidated Graphics by 12% as of Oct. 31. Does it matter? Would you buy shares of Quad/Graphics at current prices? Please weigh in using the comments box below.
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