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 tobacco curing technologist Star Scientific
So what: Within the first hour of trading, the stock sank as much as 12%, only to quickly recover about half of the loss. At the time of publication, Star Scientific was down 6% on massive volume of roughly 6.5 million shares, versus its average volume of just 1.6 million shares.
Now what: I wouldn't be so quick to buy into today's selloff. Fueled by favorable Food and Drug Administration rulings regarding its smokeless tobacco products, insider buying, and articles suggesting that Star Scientific has "cured Alzheimer's disease," the shares are still up a whopping 120% over just the past two months. But while Star Scientific isn't exactly suitable for risk-averse investors, the recent buzz surrounding the stock, coupled with its beta of more than two, might make it an ideal play for active traders.
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