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 Harbin Electric
So what: The newswires were quiet today, but someone bid up the stock just before 10:30 a.m. ET by buying a large batch of shares. This could have been a short seller closing out a position, considering that 20% of shares outstanding are sold short.
Now what: I would see this as an opportunity to get out of Harbin Electric, considering the risks Chinese reverse mergers have shown lately. Interactive Brokers recently increased margin requirements for a list of such companies, including Harbin Electric. Reports and rumors that the CEO will take the company private have been swirling for months. I may miss out if the company is indeed taken private, but I'm going to stay away from the potential risks Harbin poses.
Interested in more info on Harbin Electric? 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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