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 Navistar International
So what: Naturally, today's news triggers serious concerns over the company's growth going forward as it threatens to suspend sales. Without the luxury of simply being able to pay a fine, Navistar must rush to get its engines certified or risk having to stop production in order to pursue an industry standard "SCR" after-treatment technology.
Now what: Navistar intends to ask the court for a rehearing and, in the meantime, still plans to continue to ship engines until it receives further instructions from the EPA. "Our customers will continue to receive the products they ordered," a Navistar spokeswoman said. Of course, when you couple this new cloud of uncertainty with Navistar's already heavy debt load, I'd be highly cautious about buying into today's pullback.
Interested in more info on Navistar? Add it to your watchlist.