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 First Solar
So what: The solar development is a 230 MW project that's been purchased by Exelon
Now what: The worst-case scenario of buying back the project isn't the end of the world, but it's not a desirable solution for First Solar. The company has plenty of cash to buy the project and has found buyers for its developments without loan guarantees in the past.
First Solar has lost more than $380 million off its market cap, an extreme amount for a delay in a project like this. But that's the nature of solar stocks -- they can be very volatile when good news or bad news comes out. I own shares of First Solar and don't view this as a reason to panic-sell, because there are alternatives for First Solar and the loan may end up going through anyway.
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