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 7 Days Group (NYSE: SVN) dipped as much as 11% earlier in the trading day, despite no apparent news.

So what: The drop shouldn't surprise many investors, since 7 Days Group's stock has been on a tear over the past six months. Today's downward pressure comes after the bullish news last week that its hotel expansion in China is occurring at a faster pace than it had originally anticipated. With the Nasdaq having a rough day, many high-growth Chinese names seem to be following suit to the downside.

Now what: The bullish news last week seems to have ceded -- at least for the moment -- to a more realistic valuation approach to 7 Days' stock. Chinese companies have been trading at inexpensive price-to-book ratios recently, pricing in the accounting scandals that have been prevalent among the group. With 7 Days Group at a price-to-book ratio greater than 5, investors are wondering if this might not be overvalued. Short-sellers have also dramatically increased their presence over the past month. I don't think today's move should change your initial investment thesis on the company, but the growing short presence is definitely worth watching.

Interested in more info on 7 Days Group? Add it to your watchlist by clicking here.

Fool contributor Sean Williams does not own shares in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong.

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