February 26, 2013
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 A.M. Castle & Co. (NYSE: CAS ) fell as much as 21.5% briefly this morning after recovering to a slight decline for the day.
So what: The company came out with earnings this morning, which is why there was a big fuss. Revenues fell 2.9% to $274 million and loss per share was $0.24, both well below estimates. This created the conditions for a strange open where 700 shares traded hands at $13.38 in the first minute the stock traded before shares popped back to normal.
Now what: Once you look past the strange trading it's surprising the stock hasn't fallen further today. Analysts had expected a $0.10 per share so the quarterly performance was far worse than expected. I don't see any reason to buy today considering the deterioration in results.
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