Triple-S Management Shares Jumped: What You Need to Know

Updated

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 Triple-S Management (NYS: GTS) are trading 6% higher today, but fireworks occurred when the stock opened this morning. Shares opened the day at $61.21, nearly triple yesterday's close, on a 200-share trade I'm sure someone regretted immediately.

So what: The stock is really trading higher today because the company reported that fourth-quarter revenue rose 33.5% to $565.4 million and earnings per share was $0.67. Both results easily topped estimates, and management said 2012 would see earnings per share of $2.32 to $2.38, above estimates.

Now what: Results were solid, but someone obviously got overzealous placing orders when the market opened. In lightly traded stocks like this, that sometimes happens to a mythical trader I like to call Fat Finger Freddy. Considering the very good results, I'm a little surprised shares haven't risen further. Shares trade at 10 times next year's estimated earnings, a great price for this stock right now.

Interested in more info on Triple-S Management? Add it to your watchlist byclicking here.

At the time thisarticle was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.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 has a disclosure policy.

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