First Solar 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 First Solar (NAS: FSLR) surged more than 12% in early trading today on heavy volume after MidAmerican Energy announced plans to acquire the company's Topaz solar farm in California.
So what: We don't know how much MidAmerican was willing to pay for the $2 billion Topaz project. The bet is nevertheless interesting because of who's making it. MidAmerican is a subsidiary of Warren Buffett's Berkshire Hathaway (NYS: BRK.A) (NYS: BRK.B) .
Now what: Though First Solar is arguably better positioned than many peers, a handful of solar stocks rallied as the news spread. Canadian Solar (NAS: CSIQ) and Suntech Power (NYS: STP) both rose more than 5% on a down day for the market. Yet this rally will be short-lived without similar bets made by more mainline energy suppliers. Do you agree? Would you buy shares of First Solar or any of its peers at current prices? Please weigh in using the comments box below.
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At the time this article was published Fool contributor Tim Beyers is a member of theMotley Fool Rule Breakersstock-picking team. He owned shares of Berkshire Hathaway at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool owns shares of First Solar and Berkshire Hathaway. Motley Fool newsletter services have recommended buying shares of First Solar and Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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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