Polypore International fell 29% yesterday on news that Capstone stated that LG Chem will not have a plant ready until the year 2013. JP Morgan had recommended to stay on the sidelines in terms of buying Polypore stock until there is further clarity pertaining to the LG Chem integration of their battery separator into Polypore's business. investors immediately reacted by selling down the stock to levels not seen since 2010.
The company was also facing strong bearish technical patterns which sent the stock sharply lower. At $38, Polypore, continues a bearish downtrend pattern, which may mean that investors overreacted on the news.