Why Rambus' Shares Surged
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.
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