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 Satcon Technology
So what: Despite a 238% jump in revenue and improved gross margins, Satcon posted a fourth-quarter loss of $0.03 per share, while Wall Street was expecting a profit of $0.03 per share. More importantly, management's first-quarter revenue forecast of $65 million -$70 million also came in well below the average analyst estimate of $75 million.
Now what: I wouldn't be so quick to pounce on this plunge. The stock has been on fire over the past year, but management's disappointing guidance has Mr. Market questioning if there's a little too much optimism built into the price. Satcon's solar growth prospects certainly remain sunny, but I'd wait for an even cheaper price to buy into them.
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