Why Silver Spring Networks Shares Jumped
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 Silver Spring Networks jumped more than 11% during Wednesday's intraday trading after Goldman Sachs upgraded the smart-grid systems maker to "Buy."
So what: The stock has lost more than 40% of its value since early August, including a nearly 30% plunge on Aug. 13 when Silver Spring lost in a competitive bid for a 12-year, $18.5 billion-dollar contract from the U.K.'s Department of Energy. As Goldman points out, however, Silver Spring still "remains well-positioned for international expansion as evidenced by wins in Singapore, Malaysia, Australia, New Zealand, and Brazil."
Now what: As a result, and despite its earlier contract losses, Silver Spring should still be able to stay plenty busy given its significant 2014 backlog. With shares currently trading just above the company's March IPO price of $17 per share, and 47% below their 52-week-high, the stock at today's levels could certainly prove a bargain for patient investors down the road.
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The article Why Silver Spring Networks Shares Jumped originally appeared on Fool.com.Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs. 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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