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 Encore Wire
So what: Sales increased 44.6% to $256.1 million, and the company posted earnings per share of $0.19 from a loss of $0.08 last year. Despite the better earnings, today's move was short-lived because demand for the stock dried up quickly after a big trade cleared at the market open.
Now what: A 7,500-share order cleared right at the opening, and demand dried up after that, leaving shares to fall back to earth. The earnings report was strong, but with a down market again today, investors have gotten skittish about bumping stocks higher without a blowout earnings report. I don't see any reason to sell today as earnings increase and the construction industry slowly but surely gets back to work.
Interested in more info on Encore Wire? 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.
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