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 print services specialist Quad/Graphics
So what: Quad shares dropped precipitously last week on a terrible earnings report, but this is not just a simple relief rally. Superinvestor John Paulson just disclosed that he isn't selling Quad shares, as so many others have done, but held his million-share position steady from early June to late September.
Now what: It's a tacit vote of confidence, but not exactly a ringing endorsement. Quad makes up a paltry 0.1% of Paulson's portfolio, and share prices are still down 21% over the last week, or 65% year to date. With a crushing debt load, razor-thin margins even at the best of times, and nearly no cash in the bank, Quad appears headed for that great liquidation party in the sky. Mind you, rivals Consolidated Graphics
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