Earnings Conference call ( 10:30AM PST ) and a slight change in the wording of 2009 guidance ( from 40-50% growth, to atleast 40% growth )
I read that too, but the move seems like a ridiculous reaction for that slight wording change. I wonder if it could be something else?
http://www.reuters.com/article/companyNewsAndPR/idUSN1717721220080417 Solar stocks overall were also hurt by the introduction of a bill in the U.S. Senate that would extend key tax credits for renewables -- but only for one year, Clegg added. If you look, FSLR, STP, etc all fell off a cliff same time in the day. I don't think it was SPWR that did this ... must have been something going on with the bill. In fact, SPWR guided margins higher (due to decreased input costs) going out into 09. (from tradethenews) This shouldn't bode negatively: Today 01:46pm SunPower Corporation CEO: Sees polysilicon costs down 10% in 2008; Guides Q3 flat sequentially v $345Me (earlier guided Q2 R$330M-$350M) - Says silicon shipments are arriving on schedule, - Sees stable average selling prices in Q2, low single digit declines in 2H08, low double digit decline in avg selling prices in 2009 - Guides gross margin 21-22%in Q208, 30% in Q109
I'm confused by this Clegg's explanation about the senate bill introduction comment. This was proposed on Apr 3. Only thing with the solar keyword i could find for the month of April that applies. http://thomas.loc.gov/cgi-bin/query/D?c110:1:./temp/~c110kSTK0Q:: Any ideas?
They lowered their 3rd quarter view right where you see the quick sell off start. http://www.reuters.com/article/marketsNews/idINN1717721220080417?rpc=44 I think they lowered it by 60 mil on the revenue side...I don't have my bloomberg here to verify...it caused the whole sector to sell off imediately.
Fslr dropped just the same...take a look at the chart...they are probably joined at the hip. never fall in love witht a story or a stock.