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 Chinese infant formula maker Synutra International
So what: Although the company swung to a fourth-quarter loss of $8.5 million, or $0.15 per share, the results were still ahead of analyst estimates of an $0.18-per-share loss, and much better than its $17.7 million loss in the second quarter. Of course, given how badly Synutra shares have been punished over the past year, management didn't exactly have a high expectations-bar to hop.
Now what: Synutra remains just too speculative for most investors. Last week, fellow Fool Tim Beyers highlighted Synutra's lackluster fundamentals as the reason to be cautious, and today's results don't exactly do a whole lot to change things. Synutra's returns on capital are still red, revenue is still slipping, and the shares still trade at a forward P/E premium to dairy plays like Dean Foods
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