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 Valassis Communications
So what: The trading pattern is very curious considering that the company announced solid guidance for 2012 this morning. Management is expecting diluted earnings per share to be $3.07 and diluted cash earnings per share of $3.97 in 2012. Analysts expect earnings of $2.99 per share next year.
Now what: The pop made some sense with the company guiding above expectations, but the drop later in trading is a bit puzzling. Shares are trading at just 6.6 times forward diluted earnings per share, a steal for most companies. If you were looking to jump in to shares, this looks like a good opportunity considering the strong guidance for next year.
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