Investors Do Not Like First Solar’s Reliance on the Department of Energy
First Solar (NASDAQ:FSLR) has announced that a Department of Energy loan guarantee for its 550MW solar farm project is unlikely to be received by an anticipated deadline. The company is scouting for alternatives including the “sale and financing” of the project. Also, another two projects continue to be in the DOE process.
The project known as the Topaz Solar Farm project could not “process all the requirements” before the Sept 30, 2011 deadline specified under the Energy Policy Act. As a result the company is re-structuring the transaction in a manner that does not require the DOE loan guarantee.
First Solar’s stock is trading at $66.85 today, down 9.07%. Shares are down 48.67% year to date. The stock’s trading range for the year is between $68.10 and $175.45.
Traders did a lot of selling in the solar sector today: Trina Solar Limited (NYSE:TSL), Suntech Power Holdings (NYSE:STP), Yingli Green Energy Hold. Co. Ltd. (NYSE:YGE), LDK Solar Co. (NYSE:LDK), Canadian Solar Inc. (NASDAQ:CSIQ), JA Solar Holdings Co. (NASDAQ:JASO), MEMC Electronic Materials(NYSE:WFR), GT Solar International Inc. (NASDAQ:SOLR), and SunPower Inc (NASDAQ:SPWRA).