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 electronics distributor Ingram Micro
So what: The downside guidance was so wide -- Ingram now sees adjusted earnings of $0.32-$0.34 per share versus the consensus of $0.41 per share -- that Wall Street is being forced to seriously adjust its growth expectations. Management cited a drop in demand in both Europe and Australia for the profit warning, suggesting that Ingram might be much more sensitive to the recent global turbulence than Mr. Market had previously thought.
Now what: I'd look into this sell-off as a possible buying opportunity. While Europe and Australia are certainly areas of concern, Ingram CEO Greg Spierkel reassured investors that "demand in our key customer segment, which serves small and medium businesses, remained relatively solid in most parts of the world." And with Ingram trading at a price-to-cash flow of just 8, representing a discount to rivals Arrow Electronics
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