Kenexa 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 human-resource software specialist Kenexa (NAS: KNXA) resigned themselves to a 13% overnight plunge on rather average trading volume.
So what: Another month, another weak American unemployment report, and Kenexa lives and dies with the job market. Only a couple of weeks ago, shares jumped 25% on a hopeful earnings report but August has been brutal to this stock.
Now what: As recently as May, I thought Kenexa looked smart for raising expansion capital "while the iron is hot." That glowing-hot hunk of metal has gone stone-cold since then. The job market can't stay dead forever, but Kenexa shareholders will suffer until America starts hiring again.
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At the time this article was published Fool contributor Anders Bylund holds no position in any of the companies discussed here. 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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