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: Amcol International
So what: You can't really blame investors for feeling jarred. This is the first time Amcol has missed analysts' estimates in six quarters. Worse yet, it missed profit estimates by a whopping $0.17 per share, even though it reported better-than-expected revenue. Higher costs have plagued the company, pinching its profit margins.
Now what: Amcol shares had been rising since last October, so today's pullback might seem like a good opportunity to buy in. However, the company's P/E of 18 sounds a little exotic for a minerals manufacturer. Before buying in, investors should wait and see whether today's developments are a one-time deal or a sign of things to come.
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