Star Scientific Shares Plunged: What You Need to Know

Before you go, we thought you'd like these...
Before you go close icon

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:Once again, shares of Star Scientific (NAS: CIGX) fell more than 10% on no news whatsoever. Welcome back to the wide world of speculative microcaps.

So what:A broad market meltdown appears to be to blame for Star's suffering this time. For long-term investors, it's an opportunity to get in at ... 28 times book value and 566 tomes sales. Ouch.

Now what: Bullish investors will rightly counter that Star's CigRX dietary supplements are no different from any in-development drug and that the potential payoff for reducing or eliminating cigarette cravings could be in the billions. In that sense, today's selloff could be a non-event. Do you agree? Disagree? Weigh in using the comments box below.

Interested in more info on Star Scientific?Add it to your watchlist.

At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners