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How This Tech Stock Jumped and Slumped

Anders Bylund
January 28, 2013

Shares of Nam Tai Electronics (NYSE: NTE) jumped as much as 23% in pre-market actiontoday. But the bounce didn't last long. The stock started plunging as soon as the opening bell rang, and Nam Tai now trades 4% below Friday's closing price.

How can the same stock soar so high and then sink so low, all on the same batch of news?

If the classic beat-and-raise move always propels stocks higher, Nam Tai chose the equally proven opposite path. The electronics manufacturer blew the roof off the just-reported fourth quarter. Sales jumped 263% year over year to $468 million and gross profit margins expanded from 1% to 10.5%. The bottom-line impact of these twin improvements turned last year's $0.13 of net losses per share into a $0.80