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 industrial parts maker Altra Holdings (Nasdaq: AIMC) had a major malfunction this morning, falling as much as 10.3% before recovering to much smaller losses.

So what: Altra's fourth-quarter report beat earnings and revenue estimates, but the company also announced an agreement to acquire German rival Danfoss Bauer's gearmotor division -- and $75 million of new convertible debt to finance the deal. That's a lot of news to digest at once, and it took Mr. Market a while to sort it all out.

Now what: The Bauer deal is expected to add to Altra's earnings right from the start and the division produced a healthy $104 million in sales last year. In the highly fragmented parts industry, this cements Altra's position as a revenue leader ahead of Kaydon (NYSE: KDN) and Powell Industries (Nasdaq: POWL), though the company still has a long way to go before catching sector giant Regal Beloit (NYSE: RBC). Altra is growing by hook or by crook while also expanding its profit margins -- a winning combination indeed. In short, the recovery makes more sense than the initial panic today.

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