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 technology developer Rambus (NAS: RMBS) were soaring today, gaining as much as 14% in intraday trading.
So what: The jump for Rambus appears to have been driven by new research coverage from small-cap research firm Sidoti & Company, which initiated Rambus at a "buy" and slapped a $10 price target on the stock -- effectively saying it expects the stock to double.
Now what: I'm a broken record when it comes to analyst-driven stock moves. While positive research coverage can be a good reason to tune into a stock, it's important to remember that it's only a single viewpoint. Investors need to make sure they have a good handle on why they're buying and what they think the stock is worth, rather than jamming the buy button solely on the view of a Wall Street analyst.
Want to keep up to date on Rambus?Add it to your Watchlist.
At the time thisarticle was published Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.Fool contributorMatt Koppenhefferhas no financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting hisCAPS portfolio, or you can follow Matt on Twitter,@KoppTheFool, or onFacebook. The Fool'sdisclosure policyprefers dividends over a sharp stick in the eye.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.