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 Polypore International
So what: Revenue was up 10% in the third quarter to $151.7 million and net income rose to $12.4 million, or $0.27 per share. This met analysts' expectations, but apparently investors in the company were looking for more.
Now what: Polypore has a history of crushing expectations, so merely meeting expectations may not be enough. Doubling profit and increasing sales are usually great during earnings season, so I think this sell-off is an overreaction considering the strong results. With positive comments from management about demand, I'm buying this dip as an opportunity for investors to get shares on the cheap.
Interested in more info on Polypore International? Add it to your watchlist by clicking here.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Motley Fool has a disclosure policy.