What Happened?

A number of stocks jumped in the afternoon session after the US president announced a framework for a future deal with Greenland. Wall Street saw a broad-based rally, with the S&P 500 gaining 1.2% as investor concerns over global trade tensions eased. 

The positive sentiment followed an announcement that reversed course on plans to impose tariffs linked to Greenland, which had caused steep market losses earlier in the week. This recovery reflected renewed optimism in the market, as the threat of a widening trade conflict appeared to subside, encouraging investors to move back into equities.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Renewable Energy company FuelCell Energy (NASDAQ: FCEL) jumped 8.5%. Is now the time to buy FuelCell Energy? Access our full analysis report here, it’s free.
• Renewable Energy company Enphase (NASDAQ: ENPH) jumped 12.3%. Is now the time to buy Enphase? Access our full analysis report here, it’s free.
• Marine Transportation company Pangaea (NASDAQ: PANL) jumped 18.2%. Is now the time to buy Pangaea? Access our full analysis report here, it’s free.

Zooming In On Pangaea (PANL)

Pangaea’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. But moves this big are rare even for Pangaea and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was about 1 month ago when the stock gained 2.2% on the news that the company announced the appointment of Eugene I. Davis to its Board of Directors. Mr. Davis, who replaced the resigning Christina Tan, brought 40 years of experience advising companies on creating shareholder value and corporate strategy. The Board determined that Mr. Davis was an independent director. The Chairman of the Board, Richard du Moulin, stated that Davis had a strong track record of helping boards and management teams refine strategy and drive value. The move came as the broader dry bulk shipping sector held a cautiously optimistic outlook, with industry leaders expecting manageable growth.

Pangaea is up 25.6% since the beginning of the year, and at $8.39 per share, has set a new 52-week high. Investors who bought $1,000 worth of Pangaea’s shares 5 years ago would now be looking at an investment worth $2,943.

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