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 biofuels company KiOR
So what: There weren't any new ratings out today, but two analysts made comments that gave investors the conviction to buy. Piper Jaffray reiterated its overweight rating and its $20 price target after a field trip to the construction site of the Columbus facility. Cowen & Co. said completion of the plant at the end of the second quarter would be "a bigger trigger" for the stock.
Now what: Piper's price target is 66% higher than the current price, showing that at least one analyst thinks the upside is strong. The plant opening will be KiOR's first real opportunity to show it can perform operationally, which is what makes me worry about the stock. Until I see actual production and financial results KiOR will remain too risky for me, but I'll reconsider that after the company produces for a quarter or two.
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