Why Marrone Bio Innovations Inc. Stock Jumped Today

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 Marrone Bio Innovations  (NASDAQ: MBII  ) jumped 11.5% today after an analyst initiated coverage on the bio-based best management and plant health company.

So what: Investment firm Robert W. Baird began coverage with an outperform rating and a $15 price target on the stock. The price target represents a 43% upside based on Friday's closing price.  

Now what: Analyst upgrades or downgrades can have a short-term impact on stocks, but over the long term they shouldn't change your investment thesis. In fact, Wall Street analysts have a long history of underperforming the market and don't even have much of an incentive to get their picks right. If you're interested in buying shares, wait for this short-term pop to subside and get in at lower levels.

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  • Report this Comment On July 09, 2014, at 2:31 PM, littestickman wrote:

    I have been looking a bio-based agchem company that is innovative and MBII intriques me. I see they are losing a little money but this positioning is greater consdiering what Bayer paid for Agraquest.

    Five US Patents, 17 US patent applications pending and ~ 70 PCT/WO/EU patents/patent applications. I know some are overlaps but nice portfolio since 2006. Only drawback is the CEO name is on most of them. She appears to be scientist - does she know how to run a company?

    I couple this with 17 EPA approved pest control products and wondering why is this stock not higher.

    Looks like a good takeover candidate or its new products are going to surge the top and bottom line results.

    Any comments would be appreciated.

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