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 Chinese miner Qiao Xing Universal Resources (Nasdaq: XING ) shot up as much as 32% in intraday trading today on huge volume. Qiao Xing Mobile (NYSE: QXM ) , a mobile phone company majority owned by Qiao Xing Universal, was up as much as 15% on the day.
So what: Qiao Xing Universal has been building itself into a serious player in the mining business in China ever since it realized that its phone business was going nowhere fast. Today it announced that it won a bid to purchase a 35% interest in a copper-molybdenum mine in Inner Mongolia for $28 million.
Now what: While Qiao Xing Universal is still a small-fry miner trying to deal with losses from Qiao Xing Mobile, the purchase shows the company continuing to build its mining business. Shareholders are likely optimistic that the expansion will continue the company's turnaround and return to profitability. Meanwhile, Qiao Xing Mobile shareholders were no doubt cheering the market's reaction to the mine investment -- if not the investment itself -- since the currently outstanding offer for Qiao Xing Universal to take Qiao Xing Mobile private is made up of a mix of cash and Qiao Xing Universal shares.