Why SunPower's Shares Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of SunPower jumped as much as 10% in early trading today after it was announced that Warren Buffett would buy one of its solar projects.
So what:Berkshire Hathaway's MidAmerican Energy unit will spend between $2 billion and $2.5 billion to buy the Antelope Valley projects SunPower is building. The projects will have 579 MW of capacity and are due to be complete in 2015.
Now what: This is the second big solar buy from Buffett, who also bought hundreds of megawatts in projects from First Solar . For SunPower, it's an assurance that there's a buyer for the biggest project it has started. This is just another sign that solar is here to stay, and SunPower will be one of the leaders going forward.
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The article Why SunPower's Shares Jumped originally appeared on Fool.com.Fool contributor Travis Hoium owns shares of SunPower, Berkshire Hathaway, and SunPower and has options on SunPower. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw. The Motley Fool owns shares of Berkshire Hathaway. Motley Fool newsletter services recommend Berkshire Hathaway and First Solar. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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