Home Inns & Hotels Management's Shares Popped for a While: 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 Chinese hotel chain operator Home Inns & Hotels Management (NAS: HMIN) look downright cozy today, rising as much as 12.1% on heavy trading before falling back to a 2% overall drop.
So what:The stock fell 15% on Friday, and hopeful investors overshot the correction today. Home Inns did have some positive news over the weekend in closing the acquisition of a smaller rival, but that spot of sunshine didn't have enough muscle to sustain Monday's jump.
Now what: The midday announcement of a new U.S. Senate bill to pull American cash out of the Chinese economy may have sparked the downward move. Furthermore, global hotel chains such as Hyatt Hotels (NYS: H) and Starwood Hotels & Resorts (NYS: HOT) also dropped about 4% today, showing investor skepticism about the hospitality market amid a floundering global economy. Home Inns picked a bad day for a bounce.
Interested in more information about Home Inns & Hotels Management? Add it to My Watchlist.
At the time this article was published Fool contributor Anders Bylundholds 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.
Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.