Why SunPower's Shares Popped Again Today
Jan 3rd 2013 3:14PM
Updated Jan 3rd 2013 3:20PM
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 SunPower jumped 32% today after jumping 9% yesterday.
So what: Yesterday's move was fueled by the news that Warren Buffett was buying 579 MW of the company's projects for up to $2.5 billion. Today, an analyst from Lazard drove the move by upgrading the stock to a buy rating and slapping an $11 price target on it.
Now what: At The Motley Fool we don't take analyst upgrades and downgrades too seriously because stocks will pop or drop in the short term only to forget the move a week later. But in this case, I completely agree with the analyst's sentiment; then again, I've been bullish on the stock for well over a year. I'd like to add to my position, but today I'm letting the market ride the upgrade wave -- I'll look for a better entry point down the road. For the long term this is still a great stock, but in the short term I don't see this analyst-driven pop as a reason to buy the stock today.
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The article Why SunPower's Shares Popped Again Today originally appeared on Fool.com.Fool contributor Travis Hoium manages an account that owns shares of SunPower and personally owns shares of SunPower and has the following options: long JAN 2015 $7 calls on SunPower and long JAN 2015 $5 calls on SunPower. 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. 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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