Why Exelixis, ReneSola, and Capstone Turbine Tumbled Today

On Wednesday, stock market investors saw renewed fears about the sustainability of the five-year-old bull market, as heightened tensions between Russia and Ukraine contradicted the hopes that the conflict would quietly fade after Russia's annexation of Crimea. In addition, a growing number of analysts believe that the stock market's valuation has become high, and that hit some stocks especially hard. Among the worst performers of the day were Exelixis (NASDAQ: EXEL  ) , ReneSola (NYSE: SOL  ) , and Capstone Turbine (NASDAQ: CPST  ) .

Exelixis plunged 39% after the biotech said last night that an independent committee had recommended that its phase 3 trial of its prostate cancer drug cabozantinib continue. Investors had hoped that the results would be strong enough that the committee would recommend an early termination of the study, explaining the disappointment even though the press release didn't mention detailed information about the interim trial results. Cabozantinib has already gotten FDA approval for treatment of a form of thyroid cancer, but it's important for the company to get additional indications approved in order to maximize the value of the drug. Moreover, with warnings of sometimes-fatal hemorrhage and gastrointestinal perforations, Exelixis might have to deal with safety concerns even if the remainder of the trial goes well.

ReneSola dropped 14% following news that the U.S. Commerce Department had selected the solar company as one of the participants in its investigation of alleged dumping of Chinese solar products. In response, ReneSola said it would stop shipping its products to the U.S., risking a huge drop in its sales because of its heavy exposure to the U.S. solar market. With more than a quarter of its revenue having come from the U.S. during its most recent quarter, ReneSola badly needs a positive result from the Commerce Department investigation in order to keep up its growth at a critical time for the Chinese solar industry.

Source: Capstone Turbine.

Capstone Turbine fell 11% on another negative day for alternative energy companies, as Plug Power (NASDAQ: PLUG  ) , Ballard Power Systems, and FuelCell Energy (NASDAQ: FCEL  ) were all down between 15% and 25% on the day. Capstone's microturbines use a different technology than the fuel-cell systems that Plug Power and FuelCell Energy offer, but many analysts see the companies as potential competitors serving the same prospective customer base, especially as they grow and seek to capture more of the available opportunity in the broader space. With Capstone having doubled since December before today's drop, it's clear that momentum investors are just as scared of its stock as they are of Plug and FuelCell Energy -- at least for today.

3 stocks that could become your next huge winner
The one sure way to get wealthy is to invest in a groundbreaking company that goes on to dominate a multibillion-dollar industry. Our analysts have done it before, and now they think they've done it again with three stock picks that they believe could generate the same type of phenomenal returns. They've revealed these picks in a new free report that you can download instantly by clicking here now.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

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.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2892006, ~/Articles/ArticleHandler.aspx, 9/3/2015 7:52:04 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Dan Caplinger

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

Today's Market

updated Moments ago Sponsored by:
DOW 16,374.76 23.38 0.14%
S&P 500 1,951.13 2.27 0.12%
NASD 4,733.50 -16.48 -0.35%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/3/2015 4:00 PM
CPST $0.39 Up +0.01 +2.40%
Capstone Turbine C… CAPS Rating: ***
EXEL $5.56 Down -0.34 -5.76%
Exelixis CAPS Rating: ****
FCEL $0.86 Down -0.02 -2.34%
FuelCell Energy, I… CAPS Rating: *
PLUG $1.69 Down -0.02 -1.17%
Plug Power, Inc. CAPS Rating: *
SOL $1.25 Up +0.02 +1.63%
ReneSola Ltd CAPS Rating: *