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 Buckeye Technologies
So what: Credit Suisse downgraded Buckeye today from neutral to underperform and put a price target of $20 on the shares. The company has very few analysts following it so an analyst downgrade has a tendency to bring a wild swing in the stock.
Now what: Buckeye trades with a forward price-to-earnings ratio of 11 and has actually had analysts raising expectations in recent months. I like the long-term value of this stock and see this downgrade as a nice buying opportunity. In the short term, shares may trade lower in the next few days so I'm not getting overzealous today, but the long-term investment thesis is still intact until I hear otherwise from the company.
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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.
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