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 international oil and gas company BPZ Resources (NYSE: BPZ) jumped 12% today after an analyst upgrade.
So what: Wunderlich Securities raised its price target for the stock to $7 from $6, which is over double today's share price. This comes after BPZ's first-quarter loss of $0.03 was half of what analysts expected.
Now what: Analysts expect BPZ to swing to a profit in early 2015, but if results continue to exceed expectations that could happen later this year. A price target more than double the current stock price is aggressive in any market. These kind of pops often don't last over the long term, so I'd take a cautious approach and look for more financial improvement before jumping in. That would reduce the risk on a company that's still losing money.
