First Solar 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.
So what: Blame Robert W. Baird for the fall. The firm cut its rating on First Solar shares from "outperform" to "neutral," citing yesterday's guidance. Peer MEMC Electronic Materials (NYS: WFR) also fell, closing down a little more than 5%.
Now what: Though yesterday's sell-off was fueled by lower prices, tighter margins, and weakening market conditions, today's action was based no new information and, as a result, was probably overdone. Do you agree? Would you buy shares of First Solar at current prices? Let us know what you think 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 didn't own shares in any of the companies mentioned in this article 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. Motley Fool newsletter services have recommended buying shares of First Solar. 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.