Money Matters - Simplified

Gentex Shares Popped: What You Need to Know

 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 auto parts maker Gentex (Nasdaq: GNTX)jumped 12% today after the U.S proposed mandating backup cameras in new vehicles.

So what: Automotive safety regulators are proposing a rule requiring backup cameras on all new vehicles by 2014 to prevent drivers from backing over pedestrians. There's no word on if regulators are also considering requiring loud reverse horns like we hear from heavy machinery.

Now what: On a serious note, an average of 292 people die from back-over accidents every year. People may be a little shocked by the estimated $2.7 billion price tag for the cameras, but if the rule goes through it would not doubt be a boon for Gentex. However, the high price tag gives me the feeling there could be a fight over this, and I would like to wait for an official rule before trading on this news.

© 2010 UCLICK L.L.C.