Knowing What you Are Buying

After the close on Thursday Martek Bioscience (MATK) had some bad news that took 12.5% out of the stock after hours.

I don't know what the news was, I don't really know what the company does. What matters, as the chart depicts, is that this stock is capable of huge moves in either direction at anytime.

I have written about this before. I take time to get to know a stock and how it can react to various kinds of news.

This is not to say the stock is good or bad, I really don't know it, but knowing how much of a hot potato a stock can be could spare some pain down the road.