Tuesday was a good day to be in solar. Especially First Solar
), when shares spiked more than 50 percent rising to a new
52-week high and ending the trading day up more than 45 percent
Others in the channel saw more than a little sunshine of their
own. JA Solar Holdings Co., Ltd. (NASDAQ:
), Sunpower Corporation (NASDAQ:
), Trina Solar Ltd. (NYSE:
), Hanwha SolarOne Co., Ltd. (NASDAQ:
), and Canadian Solar, Inc. (NASDAQ:
), all experienced double-digit percentage spikes in their
also rallied Tuesday with Guggenheim Solar ETF (NYSE:
) and Market Vector Solar ETF (NYSE:
) up over 10 percent on the day.
The queen (or king) bee of the solar hive, however, was First
Solar with the main trading trigger, lots of warm, sunny guidance
from the company who said it expects to earn between $4 and $4.50
per share moving forward, with annual sales between $3.8 billion
and $4 billion.
This guidance was well above analysts' forecasts. That
expectation according to Thomson Reuters included earnings of
$3.51 per share on revenue of $3.1 billion for 2013.
Another factor in the surge was a short squeeze precipitated
by a large number of buyers rushing in to cover their positions.
Tuesday likely saw quite a few "Uh oh," buys as First Solar
shares rose higher and higher.
The Wall Street Journal
reported that First Solar plans to acquire San Jose, Calif.-based
TetraSun Inc. and start making solar panels using that company's
innovative silicon technology.
Discussing the proposed acquisition in a webcast, First Solar
Chief Executive, James Hughes said, "We believe in the company,
we believe in the industry [and] we believe that the energy world
is just beginning to understand the capabilities of photovoltaic
Finally, news reported by
, that JX Nippon Oil and Energy Corp., Japan's largest refiner,
was in the beginning stages of talks with First Solar regarding a
possible partnership to distribute the American solar panel
makers' products in Japan.
JX Energy, part owner in TetraSun, said it has decided to sell
its stake in TetraSun because of First Solar's capability to
mass-produce. Japan is expected to become the largest solar
market after China in 2013, according to estimates by Bloomberg
New Energy Finance.
Some analysts expressed skepticism about First Solar's
optimistic predictions for 2015 earnings, which were based to
some extent on power plant sales for which contracts have not
First Solar CEO, Hughes, however, said he was confident First
Solar would reach its goals, given the growing level of demand in
the global solar market.
At the time of this writing, Jim Probasco had no position in
any of the mentioned equities.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Profit with More New & Research
. Gain access to a streaming platform with all the information
you need to invest better today.
Click here to start your 14 Day Trial of Benzinga