Why MeadWestvaco's Shares Popped

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 MeadWestvaco (NYSE: MWV  ) jumped 12%, after the company got a big new investor.

So what: Nelson Peltz's Train Fund Management said that it has about a 1% stake in the company, in a regulatory filing made Thursday. The fund owns 1.6 million shares in the company.  

Now what: Big investors buying a stock don't fundamentally change a company, but they can be a bullish indication for traders. I don't think it's worth buying just because someone else is, especially without significant news. I'd stay away from the move for today and, if shares pull back from this pop, it would be a better time to jump in.

Interested in more info on MeadWestvaco? Add it to your watchlist by clicking here.


Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 17, 2013, at 10:23 PM, neamakri wrote:

    So Train Fund purchased 1% of the company and the stock price jumped 12%.

    Train Fund should sell at 12% profit then do it again after the price bottoms.

    Sure hope no Fools bought into this.

Add your comment.

DocumentId: 2259689, ~/Articles/ArticleHandler.aspx, 4/18/2014 9:58:19 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.


Advertisement