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 water-handling equipment manufacturer Mueller Water Products (NYS: MWA) jumped as much as 18% in per-market and early trading, but sank back down to last night's closing prices in short order on heavy volume.
So what: Move along, nothing to see here -- Mueller has no significant news going on and the water-equipment sector is pretty quiet in general. China Valves Technology (NAS: CVVT) and Sun Hydraulics (NAS: SNHY) followed similar chart patterns to a modest 2.6% and somewhat more alarming 4.6% drop, respectively, despite the only news between the two being a thumbs-up inspection of a new China Valves product.
Now what: I think we're looking at an amplified version of the larger market today as the Dow and S&P 500 jumped due to good jobs data, but then dropped back down on other economic fears. Water-related infrastructure projects live and die by government projects and housing markets. As for that sudden 18% jump, I don't think you'll find a rational explanation anywhere -- thinly traded stocks like Mueller simply misbehave sometimes.
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At the time thisarticle was published Fool contributor Anders Bylund holds no position in any of the companies discussed here. Motley Fool newsletter services have recommended buying shares of Sun Hydraulics and Mueller Water Products. 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 is investors writing for investors.
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