Flagstar Bancorp Shares Plunged: What You Need to Know
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 Flagstar Bancorp (NYS: FBC) plunged 15% to start the day and then climbed into positive territory in a steady climb throughout the day.
So what: This looks like a dead cat bounce after Flagstar plunged twice already this week. Today the market is absorbing a downgrade from FBR Capital and contemplating exactly when shares may be done plummeting.
Now what: I'm awfully leery of a move like this, especially after a stock plunged so far during the week. Catching a falling knife is a dangerous proposition, and I'm not convinced the stock has bottomed out. For now I'm going to watch from the sidelines and let traders try to pick a bottom, if one is to be found.
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At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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