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 Longtop Financial Technologies
So what: With less than an hour left in the trading day, more than 8 million shares have traded hands -- nearly 10 times the normal volume. Citron Research was once again the culprit of another stock pummeling when it unveiled a scathing report on Longtop Financial.
Now what: Regardless whether you like Citron Research, it has become a force in the market and has exposed some questionable Chinese firms. With the publicity this is likely to receive, Longtop management will likely be forced to respond as China MediaExpress did, and investors should stay on the sidelines until any accusations are cleared up. Citron has been spot-on in the past, and I'm not going to bet against it this time.
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