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 rearview mirror manufacturer Gentex
So what: Gentex's stock has been on cloud nine ever since reports surfaced that U.S. auto-safety regulators may require backup cameras in all new vehicles by 2014. That's swell (to say the least) for Gentex since the company already sells millions of rearview mirrors to major automakers including GM
Now what: It's important to note that changes in Wall Street views on a stock don't do anything to the underlying value of the company. That said, Soleil's new price target does give investors a gauge of what the new backup camera regulation could mean for Gentex's stock. If we believe Soleil, there should still be plenty of room for Gentex's stock to run even after today's gain. However, the stock is already up nearly 30% since talk of the new regulations started making the rounds, so investors may want to take some deep breaths as they dig into the numbers on this one.
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