Why Shares of Senomyx, Inc. Popped Today

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 Senomyx jumped as much as 12.6% in early trading today after announcing a new partnership.

So what: Senomyx is partnering with PepsiCo to continue its Salt Taste Program, which is trying to identify modifiers to "restore the desired salty taste in products with reduced salt." Pepsi is funding the research and will have non-exclusive rights to salt flavor modifiers.  

Now what: Financial terms of this deal weren't disclosed so it's very hard to quantify the impact long term. It's also unknown what will be discovered in the program. At the very least, this is an incremental positive for Senomyx, but with losses piling up, I'd like to see earnings turn around or hear more about the financial upside of this Pepsi deal before jumping in.

Three stocks poised to be multibaggers
The one sure way to get wealthy is to invest in a groundbreaking company that goes on to dominate a multibillion-dollar industry. Our analysts have found multibagger stocks like Netflix time and again. And now they think they've done it again with three stock picks that they believe could generate the same type of phenomenal returns. They've revealed these picks in a new free report that you can download instantly by clicking here now.

The article Why Shares of Senomyx, Inc. Popped Today originally appeared on Fool.com.

Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends and owns shares of PepsiCo. 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.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story