Why First Solar'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.
So what: Today's move was a result of Los Angeles County Department of Public Works giving final approval to First Solar to complete the 230 MW Antelope Valley project it is building there. Inspectors brought the project to a screeching halt when a county inspector refused to certify electrical connectors First Solar was using on the project. The connectors had been used in other projects built by First Solar without issue.
Now what: This is the type of regulatory burden that is slowing solar in the U.S., and it appears that the inspectors simply needed more information because this was their first major project. Left hanging in the balance were investors and 230 workers who were furloughed during the delay. But never fear, the project is back on and investors are cheering the move today. This alone doesn't make me bullish on First Solar, but it's an incremental positive for shareholders.
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The article Why First Solar's Shares Jumped originally appeared on Fool.com.Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Motley Fool newsletter serviceshave recommended buying shares of First Solar. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.