Babcock & Wilcox Shares Jumped Temporarily: What You Need to Know

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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 boiler manufacturer Babcock & Wilcox (NYS: BWC) rose more than 10% in early trading after the Environmental Protection Agency said it would propose a rule for reducing mercury, lead, and soot in boilers and incinerators.

So what: The EPA and green groups are positioning the rule as a cost-saving measure, claiming it could reduce health-care costs related to harmful emissions. Babcock & Wilcox could benefit as a manufacturer of cleaner boilers, Bloomberg reported.

Now what: If that seems a stretch, you're not alone in thinking that. Babcock & Wilcox's early surge moderated to a mere 1% gain on a day when the Dow Jones Industrial Average (INDEX: ^DJI) rose more than 4%. Where do you stand? Would you buy shares of Babcock & Wilcox at current prices? Please weigh in using the comments box below.

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At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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