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 SunPower (NASDAQ:SPWR) jumped 32% today after jumping 9% yesterday.
So what: Yesterday's move was fueled by the news that Warren Buffett was buying 579 MW of the company's projects for up to $2.5 billion. Today, an analyst from Lazard drove the move by upgrading the stock to a buy rating and slapping an $11 price target on it.
Now what: At The Motley Fool we don't take analyst upgrades and downgrades too seriously because stocks will pop or drop in the short term only to forget the move a week later. But in this case, I completely agree with the analyst's sentiment; then again, I've been bullish on the stock for well over a year. I'd like to add to my position, but today I'm letting the market ride the upgrade wave -- I'll look for a better entry point down the road. For the long term this is still a great stock, but in the short term I don't see this analyst-driven pop as a reason to buy the stock today.
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Fool contributor Travis Hoium manages an account that owns shares of SunPower and personally owns shares of SunPower and has the following options: long JAN 2015 $7 calls on SunPower and long JAN 2015 $5 calls on SunPower. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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