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 alternative fuel company KiOR (NASDAQ: KIOR) jumped as much as 14% in early trading, after announcing earnings and a plant opening. Shares settled into a much smaller gain as the day moved along.
So what: KiOR reported exactly $0 in revenue, and a $27 million, or $0.26 per share, loss in the third quarter. But, never mind that; the company announced that its first commercial scale plant is up and running.
Now what: This is a speculative play on energy, at best, and we have no idea when or if KiOR will generate a sustainable profit. The plant opening is an important milestone, but I wouldn't be a buyer until I see profits coming from the company, and sustainable feedstock prices. KiOR has a better shot than most to make it in this market, but it just isn't worth the risk.
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