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 software company AsiaInfo-Linkage
So what: Pacific Crest provided the spark for AsiaInfo shares today, as it upgraded the stock from "sector perform" to "outperform." The stock has been badly in need of a push ever since it announced a couple of months ago that fourth-quarter revenue would be below analysts' expectations at the time. Shares were trading at nearly $23 prior to the release and had drifted down close to 30% before today's pop.
Now what: What does today's upgrade mean for AsiaInfo shares? For Foolish investors, it certainly doesn't mean that it's time to blindly chase the stock. However, the positive note could be a good reason to take a closer look at the stock. Shares of many Chinese companies -- particularly in the software space -- had a rough 2010, and current valuations could be making some of them more attractive for the year ahead. But investors will want to be sure to dig into AsiaInfo and come up with their own bullish thesis before jumping on board.
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Fool contributor Matt Koppenheffer does not own shares of any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or on his RSS feed. The Fool's disclosure policy is looking forward to a great 2011!