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.
What: Shares of thin-film-solar manufacturer First Solar (NAS: FSLR) jumped 14% in late trading after Bloomberg reported that the company may supply the world's largest solar farm.
So what:NextEra Energy (NYS: NEE) is looking to build a 1 GW solar farm in Southern California, and Bloomberg is speculating that First Solar may win all of the contract, or at least a large portion. First Solar is one of only a few solar manufacturers with the capacity to supply a project that size, and would be a natural fit with its history in large solar projects.
Now what: This is just speculation at this point; NextEra said it hasn't chosen suppliers at this point. With a project that size the company will no doubt be looking for a manufacturer with a history of performance and a strong balance sheet, leaving First Solar as one of only a few options. I don't think this changes the investment thesis for First Solar, or makes it a must buy today; it just provides further proof that this is one of the strongest companies in solar.
Interested in more info on First Solar? Add it to your watchlist byclicking here.
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.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.