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 lumber and wood products manufacturer Universal Forest Products
So what: After Friday's closing bell, the company issued "Measures to Align Costs with Current Business" -- a euphemism for "Deep Cuts Because of Weak Sales." Companies often tacitly admit defeat at the start of a long trading lull to diminish that bad news's impact, but the trick didn't work this time. Investors are punishing Universal Forest with abandon, even after sleeping on it over the weekend.
Now what: "These are terribly difficult adjustments that cause us, in many cases, to say goodbye to valuable employees who have been with Universal for many years," said CEO Michael Glenn. That reminds me of the practices that killed Circuit City: slashing costs by releasing experienced team members, and always training new hires at minimum wage. Circuit City's terrible staffers led Best Buy
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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.