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 networking equipment maker UTStarcom (Nasdaq: UTSI) fell by as much as 14% earlier today after the company lowered its full-year revenue target from $325 million to a range of $278 million to $280 million.

So What: UTStarcom is going backwards just as many Chinese stocks are experiencing massive revenue growth. In networking equipment, Cisco (Nasdaq: CSCO) has improved sales by 10.9% over the past year. Juniper Networks (Nasdaq: JNPR) has grown sales by 16.6% over the same period. UTStarcom is now on pace for its revenue to decline by at least 27%.

Now What: Let this be a lesson. While many China-based stocks are ready to pop, not every Chinese stock is worth your investment dollars. In UTStarcom's case, a history of negative returns on capital and declining revenue should tell you all you need to know.

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