First Solar, Inc (NASDAQ:FSLR) is not in a bright spot, Sunedison Inc (NYSE:SUNE)
First Solar, Inc (NASDAQ:FSLR) shares were literally taken to be chopped post news of sales delays as well as a shelf-offering of up to 9.98M shares of stock. The company is expecting some delays in few key-sales closing dates. Consequently, there might be a shift from the Q2 to the latter half of 2013. Investors should expect a less-than-healthy earnings report and with a bit of luck, either the Q3 or Q4 will rise by a corresponding amount. According to FSLR, this will not impact the annual report.
FSLR has been sort of operating on the Elon Musk model. Flush-out the shorts with some good news, sit back and watch the stock price hit the ceiling. Sell-out stock and that cash goes back into your kitty. And by the looks of it, that is exactly what First solar has been doing. Just last week the company said that it has plans of selling 8.5M shares in a secondary offering. At the current share price which has been hovering around the $50 mark, it would raise something in the range of $432 million. The company plans on using the proceeds in the development of new solar farms or for expansion into new areas, amongst other things. In the wake of crashing expectations from the solar industry, FSLR has been the darling of short sellers. However, its improved sales and earnings projections managed to surprise investors in April.
The top gun…
Sunedison Inc (NYSE:SUNE) pushed the solar sector northwards on Friday and was undoubtedly the technology winner for the day. On Friday, as a whole, the sector was down 0.6% while SunEdison rose 6.4% to $8.48 per share on average volume. Around 6,708,915 SUNE shares exchanged hands in comparison to its daily average of 7,085,400 shares. The stock opened at $7.99 per share, rose to touch an intraday 8.56 and closed at $8.48 per share in comparison to Thursday’s close of $7.97. The solar industry has seen some highs and lows this year and volatility seems to be a rule rather than an exception. And so, while companies like Sunedison Inc (NYSE:SUNE) may have their spot in the sun every now and then, First Solar, Inc (NASDAQ:FSLR) is not one to be left in the shadows.