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 RealPage
So what: The company just reported fourth-quarter earnings, but actually beat analyst estimates on both the top and bottom lines. The only analyst action was a reiterated "buy" rating by RBC Capital Markets. However, the earnings outlook for fiscal 2011 falls just short of analyst estimates.
Now what: RealPage is a newcomer to the public market, and neither analysts nor us investors have had much of a chance to build financial models for the company. For 2011, the company hopes to increase its market share while looking for plug-in acquisition opportunities to bolster growth. We'll see soon enough how management handles that two-pronged plan; for now, I suggest that you let this too-hot stock cool down a bit before touching it with your own money. It's a perfectly safe addition to your watchlist, though.
Interested in more info on RealPage? Add it to your watchlist.
Fool contributor Anders Bylund holds no position in any of the companies discussed here. 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 is investors writing for investors.