JA Solar Holdings Shares Plunged: What You Need to Know
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 JA Solar Holdings (NAS: JASO) fell more than 12% in early trading before closing down 5%. The world's largest maker of solar cells reported worse than expected second-quarter results.
So what: Last year's $0.18-per-share profit turned into a $0.22-per-share loss. That wouldn't have been so bad save for Wall Street's estimates; analysts had been looking for a $0.195-per-share loss, Bloomberg reported.
Now what: CEO Peng Fang's comments were no less encouraging. In a statement, he said that "market conditions" and "inventory provisions" took a toll on both gross margin and earnings. A Q2 profit warning from LDK Solar (NYS: LDK) , issued this afternoon, lends credence to the concerns. Where do you stand on this stock? Would you buy at these levels? Weigh in using the comments box below.
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