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 retail drugstore operator China Nepstar Chain Drugstore
So what: Goldman's bearish opinion comes on the heels of China Nepstar's disappointing results last week, in which rising operating costs bruised the bottom line. Particularly, Goldman sees a tough operating environment ahead for Chinese retail pharmacies now that the 15% drug mark-up added by hospitals has been eliminated.
Now what: I wouldn't be so quick to pounce on today's plunge. While China Nepstar's growth prospects might be enticing, rising costs and a potentially weakened competitive position are risks that this Fool just isn't willing to take on. Of course, with China Nepstar trading at a clear P/E premium to U.S.-based pharmacies Walgreen
Interested in more info on China Nepstar? Add it to your watchlist.
True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Fool's disclosure policy always gets a perfect score.