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 insurance company CNinsure
So what: Shares bounced on news the company would be buying back $100 million of U.S. shares by June 30, but then the market got a little confused. Isn't this the same company that issued $115 million of shares just this past summer? Wasn't it supposed to use the cash for growth?
Now what: Operations look to be strong and shares popped just last week on news that the CEO and CFO would be buying shares, but something seems a little off with this company. At the risk of missing out on a growth story, I'm going to stay away from a company that looks confused about its cash needs. I've seen one too many Chinese companies with surprise announcements that bash the stock to take a chance on this one.
Interested in more info on CNinsure? Add it to your watchlist.
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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.