Cemex Shares Popped: What You Need to Know
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 cement maker Cemex (NYS: CX) jumped 20% today on positive economic news.
So what: Optimism that Europe is finally closer to solving its fiscal problems has pushed most stocks higher, especially those in emerging markets. Today, the Organization for Economic Cooperation and Development also announced GDP growth predictions for Mexico of 3.3% in 2012.
Now what: The pop today is huge, but Cemex shares lost value in seven straight trading sessions so this could be a dead cat bounce for the stock. Shares were hovering near a 52-week low to end last week and in the search for a bottom sometimes you get bounces like this. I'm not a buyer today, especially considering the company is expected to post losses for the foreseeable future.
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At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.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.