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 Plug Power Inc (NASDAQ:PLUG) jumped 10% today after an analyst made positive comments about a competitor.
So what: Plug Power's fuel cell competitor Fuel Cell Energy received some positive comments in an analyst note from Stifel Nicolaus, and that pulled all fuel cell companies higher today. The problem is, Plug Power and Fuel Cell Energy don't compete in the same markets, and the fact that Fuel Cell Energy's power plants may be competitive with renewable energy has little to do with Plug Power.
Now what: The fuel cell craze continued today, and investors continue to be fooled into thinking that all fuel cell companies are alike. They aren't, and Plug Power doesn't even make its own fuel cells, making the bump even more illogical. I'd stay out of the move today, because it wasn't related to Plug Power, and take a skeptical view as it is. I think the stock has run too far, too fast, and Plug Power is far from making the profit investors have priced into the stock.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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. The Motley Fool has a disclosure policy.