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 beleaguered natural gas engine technology specialist Westport Innovations (WPRT 0.34%) jumped more than 14% Wednesday. After the stock fell more than 80% in 2014, today's spike is a bit of good news for shareholders.
So what: The thing is, there's no discernible news to explain today's big move. However, there has been heavy trading in the company's shares, with trading volume only a few hours into the session almost reaching the 90-day average. Considering that the company's market capitalization had fallen below $240 million, and that significant speculation persists regarding the company's ability to turn things around, volatile days like this shouldn't come as a surprise.
Now what: It looks like early trading activity has created some momentum for the stock. Oil futures are down again today, so we can't even point at rising oil prices -- generally considered a good thing for Westport, as the company's business is largely driven by natural gas being cheaper than gasoline and diesel -- as being behind the move.
It's best to not waste energy looking for a reason for this price jump. That is particularly true in a case like Westport's where long-term investors should be focusing on the fundamentals of a business trying to resurrect its prospects. In the long term, the stock price only matters if the business proves itself sustainable.
