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 Chinese solar manufacturer Trina Solar
So what: Today is really a combination of things that are affecting solar stocks and Trina Solar negatively. Competitor Solyndra filed for bankruptcy earlier this week, starting a slide that continued today after poor employment numbers sent stocks lower. Since solar stocks are generally high beta (meaning they typically move more than the market), it's no surprise to see solar stocks lower today.
Now what: Today's move isn't a huge surprise if you saw earnings for the solar industry in the second quarter or are concerned that bankruptcies would spread. But conditions are actually getting better for solar manufacturers, and I think that stocks are overreacting. Fewer competitors is good for leaders such as Trina Solar, First Solar
Interested in more info on Trina Solar? Add it to your watchlist.