Franklin Street Properties 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 real estate and banking operator Franklin Street Properties (ASE: FSP) opened up 13.4% below Tuesday's closing price but climbed back to nearly break even on moderate trading volume.
So what: It doesn't take much to make a thinly traded AMEX stock like Franklin Street jump miles up, down, or sideways, and that's what happened here. The stock latched on to the market enthusiasm at the end of Tuesday with tremendous zeal, then overcorrected after Wednesday's opening bell for no particular reason.
Now what: Franklin Street is hardly the only small-cap real estate specialist to act jittery amid these mixed messages on interest rates and creditworthiness. Cousins Properties (NYS: CUZ) saw a brief 13% spike in after-hours trading last night, Government Properties Income Trust (NYS: GOV) experienced a brief 4% aftermarket slump, and Brandyvine Realty Trust (NYS: BDN) sagged by 5%. None of these drastic moves lasted long, and all were done on low trading volumes as investors tried to make heads or tails out of confusing government signals.
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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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