First Solar Shares Plunged: What You Need to Know

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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: One day after issuing awful guidance and a week after Warren Buffett's big buy, shares of First Solar (Nasdaq: FSLR  ) fell 10% after an analyst downgrade. The stock closed off roughly 6%.

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 (NYSE: 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.

Interested in more information about First Solar? Add it to your watchlist by clicking here.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-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.

Read/Post Comments (1) | Recommend This Article (4)

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 18, 2011, at 12:16 AM, HWY216 wrote:

    FSLR looks like a good stock to buy puts on. This one looks like a dead dog!

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