Real Goods Solar, Inc. (NASDAQ: RGSE) is having an overwhelmingly strong start to the trading session. While the stock started the day in the red, it quickly made a run for the green, and has been well in the gains since. The gains on the stock are ultimately the result of rumors that are breaking as we speak. Before we get into the details, we’d like to thank our partners at Trade Ideas for being the first to alert us to the movement. At the moment (10:54), RGSE is trading at $2.31 per share after a gain of $0.18 per share (8.50%) thus far today.
RGSE Gains On Takeover Chatter
As mentioned above, while Real Goods Solar started the day off in the red, it quickly spiked into the green and beyond early on today. After seeing the spike, the CNA Finance team started to dig around to see what was happening. While we didn’t see anything with regard to news released by the company, we did see a rumor that seems to be the source of all of the excitement. At the moment, rumors are breaking that the company will soon be taken over. However, these rumors are overwhelmingly vague. While they do suggest that RGSE will be taken over, the rumors do not suggest who is interested in buying the company, nor at what price.
This leads us to a warning that often comes with rumor-related articles on CNA Finance. The reality is that trading based on rumors is risky business. After all, this isn’t the first one that we’ve seen, and like most rumors, market rumors are not generally based in fact. Instead, market rumors, like most rumors, are made up with an attempt to get a rise out of the audience the rumor is designed for. The reality is that rumors like the one that we’re seeing surrounding RGSE are one of the most common forms of stock market manipulation. With that said, if you plan on trading based on this news, please be sure to do so with caution.
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What We’ll be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on RGSE. In particular, we’re interested in following the story to see if there is any validity to the takeover rumors that are surfacing today. While we don’t believe that a takeover will happen, anything can happen in the market. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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