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 retail drugstore operator China Nepstar Chain Drugstore
So what: Goldman's bearish opinion comes on the heels of China Nepstar's disappointing results last week, in which rising operating costs bruised the bottom line. Particularly, Goldman sees a tough operating environment ahead for Chinese retail pharmacies now that the 15% drug mark-up added by hospitals has been eliminated.
Now what: I wouldn't be so quick to pounce on today's plunge. While China Nepstar's growth prospects might be enticing, rising costs and a potentially weakened competitive position are risks that this Fool just isn't willing to take on. Of course, with China Nepstar trading at a clear P/E premium to U.S.-based pharmacies Walgreen
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