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.
So what: Other than the Asian inflation and European sovereign debt fears ruling the day, there doesn't seem to be any company-specific news driving Fabrinet's drastic price plunge. Of course, with Fabrinet's fortunes tied so closely to fickle optical network spending, Mr. Market may feel that the company is particularly vulnerable to ongoing economic stress.
Now what: I'd wait for further pullbacks before hopping on to Fabrinet. Even with today's double-digit plunge, Fabrinet is up about 60% since its IPO in late June, while rivals CIENA
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