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: One day after a massive drop, shares of IntraLinks Holdings (NYS: IL) surged 33% in early trading and closed up more than 20%.
So what: While the rally can't make up for yesterday's breathtaking 45% decline, it's a good start -- as is an announcement that Asian law firm Mallesons has selected IntraLinks' on-demand software for managing mergers-and-acquisitions advisory work.
Now what: Investors had been concerned IntraLinks would realize little to no third-quarter growth. Now that there's a contract to point to -- and a deal that could involve deploying the software to hundreds of lawyers -- sellers don't have as much to fear. Or at least that's the theory. The truth is IntraLinks trades about even with long-term earnings growth estimates that could prove as unreliable, given the difficulty of getting big firms to sign big deals as a teetering economy looms. Do you agree? Disagree? Weigh in using the comments box below.
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