October 27, 2010
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: Empresa Distribuidora (NYSE: EDN ) shares jumped 16% today on news of the death of Argentina's former president.
So what: Yes, you read that right, the stock is up on news of former president Nestor Kirchner's death. The news pushed Argentinean stocks traded in the U.S. higher today.
Now what: This is a strange reason for pushing stocks higher, but the market can do strange things. Kirchner was never a favorite of investors, and his death brings speculation that Argentina may be more likely to join the International Monetary Fund. Considering there is no actual news about the IMF, this looks like a speculative move and I don't think it's worth buying on.
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