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 aluminum wheel maker Superior Industries
So what: Manufacturing inefficiencies continue to weigh heavily on margins, but a big top-line beat -- fourth-quarter revenue jumped 14% to $216.8 million versus the consensus of $205 million -- suggests that things are starting to turn around. Additionally, the company entered 2012 with a cash hoard of $193 million and no debt, giving conservative followers plenty to feel good about.
Now what: Don't let today's rally keep you from looking into the stock. "We believe we have great opportunities to improve our operating performance," said Chairman and CEO Steven Borick. "Although tangible results of our efforts likely will not be visible in the shorter term, we are committed to implementing improvements that we are confident will contribute to the longer-term health of the business." With the stock still off about 30% from its 52-week high and sporting a 3.5% dividend yield, betting on that optimism seems like a good idea.
Interested in more info on Superior Industries? Add it to your watchlist.
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Why Superior Industries International Inc. Slumped Today
The aluminum-wheel manufacturer came up short of expectations.
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Steven Borick gives investors more than five months' notice as wheel maker begins search for a successor.
Superior Industries International Turns More Into Less
Keep your eye on margins.