Goldman Sachs causing the big downdraft in solar stocks today

Discussion in 'Stocks' started by Port1385, May 22, 2008.

  1. A lot of the solar stocks plunged today. Im wondering what Goldman Sach's angle is on this one. Are they loading up as they watch the solar stocks drift down?

    Everytime I have seen Goldman upgrade or downgrade a stock then something fishy happens...

    Out of the Gate: Solarfun plunges, erasing gains
    Thursday May 22, 10:25 am ET
    Solarfun plunges after Goldman cuts to 'Sell,' saying shares are overpriced after run-up

    NEW YORK (AP) -- Shares of Solarfun Power Holdings Co. fell sharply at market open on Thursday after a Goldman analyst downgraded the China-based solar cell maker to "Sell," saying the stock is overpriced after a recent surge in value.

    The stock plunged $3.18, or 12 percent, to $23.32, erasing most of the stock's gains from the past several days.

    Cheryl Tang cut Solarfun's rating from "Neutral" in a note to investors Thursday, highlighting the recent gains. Shares of Solarfun are up more than 75 percent since closing May 12 at $14.94.

    Tang attributed the run-up to high expectations ahead of the company's first-quarter earnings report, which came in better-than-expected on Wednesday.

    The stock's "premium valuation" is now unwarranted, she said, especially as solar wafer prices hold steady and pressure the company's earnings in the coming quarters.

    Tang raised her price target to $20 from $17, implying she expects the stock to fall 25 percent in the next 12 months. She also raised her earnings estimates for the next several years to reflect the company's first-quarter results.

    Early Wednesday, Solarfun posted a first-quarter profit of $15.3 million, or 32 cents per ADR, handily beating Wall Street estimates of 16 cents per ADR, according to a poll by Thomson Financial.

    Shares have traded between $8.22 and $40.19 in the last 52 weeks.
  2. Goldman has way too much concentrated power - no one institution should be able to wield such leverage.
  3. I agree, the giant needs to be taken down a notch
  4. I'm starting to think that Goldman Sachs is the root of all evil in the world. No joke.
  5. CROOKS!!! They issued the downgrade yesterday sending solar down over 10%. Now some of those same stocks have recovered all the losses from yesterday.

    Incredible!!!! CROOKS!!!! Goldman traders were busy shorting before the downgrade then the downgrade came out and then the traders covered and went long.
  6. They hold the magical formula for making money in the market. Influence + $$$$$$ = 10x($$$$$$)

  7. GOLDMAN SACHS is an institutional trader, he wants you to do exactly the opposite what they want to do. You sell they back up the trucks. Never trust, always verify.