Polypore International 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.
So what: The Volt isn't selling as well as GM had hoped and the company will shut down production for five weeks, starting in March. That could put a dent in Polypore's sales because the company is believed to supply materials for the Volt.
Now what: Since Volts weren't exactly charging off the shelf I don't think this derails Polypore's long-term financial future. It may be a small blip in coming quarters, but if you have your eye on this stock, I see today as a buying opportunity. Shares are trading at less than 14 times 2012 earnings estimates right now, a nice value for a company expected to grow earnings.
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At the time this article 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.Motley Fool newsletter services have recommended buying shares of General Motors and Polypore International. 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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