Why Genie Energy Ltd's Shares Plunged
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 Genie Energy Ltd dropped 23% today after its subsidiary IDT Energy announced an acquisition.
So what: IDT Energy is buying Diversegy. LLC, a retail energy advisory and brokerage, and Epiq Energy, an independent energy sales organization. Terms of the deal weren't disclosed so it's tough to tell exactly what the impact will be long-term.
Now what: Shares of Genie Energy have risen rapidly since reporting earnings last month and this could be a buy the rumor, sell the news dip. Keep in mind that shares are still higher than they were throughout most of November. Without details of the acquisition it's hard to make a determination about how good this will be for Genie, which will keep me on the sidelines today.
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The article Why Genie Energy Ltd's Shares Plunged originally appeared on Fool.com.
Fool contributor 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.
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