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 security-products specialist American Science & Engineering
So what: Given the size of AS&E's earnings miss ($0.61 per share versus the average analyst estimate of $0.98 per share) and the continued broad-market sell-off, it's no surprise that the shares are hitting new 52-week lows today. Lower demand for the company's X-ray inspection systems has been weighing on results of late, and it's obvious that Wall Street expects the worrisome trend to continue.
Now what: Today's sell-off might be providing an attractive entry point. While AS&E's weak bookings remain a concern, the shares are now down more than 30% in 2011 and currently sport a decent dividend yield of 1.6%. With AS&E still expected to grow its long-term earnings at a double-digit clip, the stock's total return potential is at least worth a look.
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