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 beleaguered natural gas engine technology specialistWestport Innovations jumped more than 14% Wednesday. After the stock fell more than 80% in 2014, today's spike is a bit of good news for shareholders.
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So what:The thing is, there's no discernible news to explain today's big move. However, there has been heavy trading in the company's shares, with trading volume only a few hours into the session almost reaching the 90-day average. Considering that the company's market capitalization had fallen below $240 million, and that significant speculation persists regarding the company's ability to turn things around, volatile days like this shouldn't come as a surprise.
Now what:It looks like early trading activity has created some momentum for the stock. Oil futures are down again today, so we can't even point at rising oil prices -- generally considered a good thing for Westport, as the company's business is largely driven by natural gas being cheaper than gasoline and diesel -- as being behind the move.
It's best to not waste energy looking for a reason for this price jump. That is particularly true in a case like Westport's where long-term investors should be focusing on the fundamentals of a business trying to resurrect its prospects. In the long term, the stock price only matters if the business proves itself sustainable.
The article Why Westport Innovations Stock (WPRT) is up 14% originally appeared on Fool.com.
Jason Hall owns shares of Westport Innovations. The Motley Fool recommends Westport Innovations. The Motley Fool owns shares of Westport Innovations. 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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