Why Shares of Niska Gas Storage Partners Dropped
Nov 5th 2012 4:07PM
Updated Nov 5th 2012 4:14PM
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 Niska Gas Storage Partners (NYS: NKA) fell 10% today after being downgraded by an analyst.
So what: Analysts at Goldman Sachs (NYS: GS) downgraded the stock to sell from a neutral rating because of the company's valuation, high debt, and the low price of natural gas. The price target from Goldman is $11 per share.
Now what: Nothing really earth shattering here for investors. Analyst downgrades can sometimes lead to a big move in the stock but it's usually short-term in nature. That said, I have to agree that this stock is a sell and I'd be getting out now if you didn't after the latest in a string of big earnings misses.
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The article Why Shares of Niska Gas Storage Partners Dropped originally appeared on Fool.com.Fool contributor Travis Hoium has no positions in the stocks mentioned above. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Goldman Sachs Group. 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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