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 residential solar installer SolarCity (NASDAQ: SCTY ) jumped as much as 18% today after announcing an acquisition.
So what: SolarCity is buying solar module start-up Silevo for $200 million with another $150 million potential in earn-outs. This is the company's first move into solar panel manufacturing and further vertically integrates the company.
Now what: On a conference call today, Chairman Elon Musk said that he was worried the world wouldn't have enough solar panels for SolarCity when it increased installations to near 10 gigawatts per year. He also said that conventional panels aren't efficient enough and Silevo's higher efficiency should help lower costs on a per kW-hr basis. This is a massive bet on a technology that's not yet proven at the scale SolarCity is talking about, so it's a huge risk but a big opportunity at the same time.
Will this stock be your next multi-bagger?
SolarCity has been a multi-bagger and if you give us five minutes and we'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks one stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.