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 drug maker Jazz Pharmaceuticals
So what: Today's action is obviously reminiscent of last year's May 6 "flash crash," in which the Dow Jones dropped and popped about 9% within just a few short minutes. Of course, when that kind of stop-limit-triggering sell-off takes place in an already highly volatile, highly shorted biotech stock like Jazz, the effects are that much more pronounced.
Now what: I wouldn't look too much into today's roller-coaster ride. Instead, investors would do well to focus their attention on Jazz's first-quarter results scheduled for next week. Because if Mr. Market is as impressed with it as it was with the last couple of earnings reports -- Jazz shares up a whopping 200% over the past six months -- today's flash crash should be a distant memory.
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