Star Scientific 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 Star Scientific (NAS: CIGX) fell more than 13% in early trading before closing down 3.5%. The Big Move was the stock's third since the beginning of June, twice to the downside.

So what: In many ways, the cigarette maker is a trader's dream. High-beta stocks such as Star Scientific -- which tends to move twice as much as the overall market -- offer plenty of opportunity to get in and out in a given day, eking out gains along the way.

Now what: Yet there's a good reason we Fools advise caution when it comes to trading in Mr. Market's Mega Movers. One day of bad timing could cause years of portfolio grief. Bear that in mind before you "play" Star Scientific at these levels. 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