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 chemical maker Georgia Gulf (NYSE: GGC) exploded higher today, climbing 36% after getting a hostile takeover bid.

So what: Westlake Chemical (NYSE: WLK) offered $1.03 billion for the company in an unsolicited bid for $30 per share. The company previously attempted to discuss an acquisition with Georgia Gulf and had to resort to a hostile takeover attempt this time.

Now what: The market obviously thinks that not only is a deal likely, but the offer price will be increased considering shares are trading above $33 per share. That could very well be the case, but betting on takeovers is risky business. If you're sitting on big gains today, I would take some of it off the table to hedge the possibility that the deal falls through all together.

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