SunPower's Shares Jumped: 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 solar power expert SunPower (NAS: SPWR) jumped as much as 17.9% on timid volume.
So what: The company has been trading two classes of shares since time immemorial, but SPWRA and SPWRB were combined into a single class of shares this morning under the ticker SPWR. The sudden change in trading procedures and share counts may have confused small investors just as they took effect.
Now what: SunPower has been changing more than just the ticker, of course. A large cost-cutting initiative has taken its toll in the executive offices, and the entire solar industry is in upheaval as product prices sink faster than the Titanic. The solar market is a house divided today, with First Solar (NAS: FSLR) on the rise even as ReneSola (NYS: SOL) and Suntech Power (NYS: STP) are down by about 6%. I can smell consolidation coming the solar industry's way.
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At the time this article was published Fool contributor Anders Bylund holds no position in any of the companies mentioned. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.