Don't Misread This Stock's Crash
May 8th 2012 6:44PM
Updated May 8th 2012 6:46PM
The following video is part of our "Talking Stocks" series, in which Motley Fool analyst Austin Smith discusses trends across the investing universe.
In today's edition, Austin discusses today's huge plunge for shares of Fossil (NAS: FOSL) . The company was down close to 40% on weaker expectations for sales in Europe. Surely today's crash was kicked into high gear by renewed fears about Greece, but is a 40% plunge really justified? Even though Fossil gets about one-third of its sales from Europe, today's drop seems aggressive.
Even more interesting is that Michael Kors dipped right along with Fossil, as the fashion retailer uses Fossil innards for its watches and sees Europe as a key growth area in the future.
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At the time this article was published Austin Smith owns no shares of the companies mentioned here. The Motley Fool owns shares of Fossil. Motley Fool newsletter services have recommended buying shares of Coach and Fossil and also shorting Fossil. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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