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 biotech Clinical Data (Nasdaq: CLDA) were hopping today, gaining as much as 17% in intraday trading on heavier-than-average volume.

So what: There isn't any news out from the company today, but Wall Street research firm Wedbush did prod the bulls by reiterating its "outperform" rating on Clinical Data's stock and raising its price target to $42. There has also been a lot of buyout talk today after the company pulled out of an investor conference. Investors think that one of the big pharma players like Merck (NYSE: MRK) or Pfizer (NYSE: PFE) may try to buy the company to get its hands on the recently approved antidepressant , Viibryd.

Now what: Approved drug or not, a company with a history of losses, cash burn, and minimal revenue is a speculation -- particularly when the market is valuing the company at $1 billion. To then speculate on the potential of a buyout, you pile speculation on top of speculation, which I assume gives you speculation squared. To be sure, there's nothing wrong with speculation as long as investors chasing a play like Clinical Data know that they are speculating and understand what comes with the territory.

Want to keep up to date on Clinical Data? Add it to your watchlist.

Pfizer is a Motley Fool Inside Value recommendation. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Fool contributor Matt Koppenheffer does not own shares of any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or on his RSS feed. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.