Rockwell Collins, Inc. (NYSE: COL)
Rockwell Collins is all over the place in the market today. After starting the day in the red, the stock dipped further down before bouncing back. Since then, it has seen its shares of ups and downs bouncing above and below the break even point, but nothing has been worth writing home about. Nonetheless, minutes ago, the stock started to spike upward. Below, we’ll talk about what we’re seeing, why, and what we’ll be watching for with regard to COL ahead.
What We’re Seeing From COL
As mentioned above, Rockwell Collins is having an incredibly erratic day in the market today. At the opening bell, the stock was in the red, dipped down, then jumped to the green. From there, it has been up and down more than a roller coaster, but staying right around the break even point. That is, until minutes ago when the stock started to make its way for the top. At the moment (11:47), COL is trading at $98.33 per share after a gain of $0.68 per share or 0.70% thus far today.
Why The Stock Is Headed For The Top
As is almost always the case, our friends at Trade Ideas were the first to send the alert that COL was spiking upward. As soon as we received the alert, the CNA Finance team started digging to see why the stock was making a run for the top. It didn’t take long to find the story, but in all reality, we don’t expect for the run to last very long either.
The truth is that the gains aren’t being caused by fundamental news surrounding the company. Instead, the upward movement is being caused by a rumor, and a vague one at that. At the moment, the rumor is that the company will soon be taken over. However, that’s all the rumor offers. No price, no buyer, no details. Considering this we wouldn’t get our hopes up, but we do believe that the excitement surrounding the rumor is the cause for the gains.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on COL. In particular, we’ll be watching to see if there is any validity to the rumor mentioned above. While we don’t believe there is, anything can happen in the market. Nonetheless, we’ll continue to watch the news and bring it to you as it breaks!
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[Image Courtesy of Flickr]