First Solar, Inc. (NASDAQ: FSLR) is being pounded on news that Exelon Corporation (NYSE: EXC) is delaying a $1.36 billion purchase of a California solar farm from First Solar. For a sector which cannot catch a break, this is not what the solar players needed to see. The good news is that this is being represented as a delay and not a cancellation.
Exelon has noted the delay is due to a federal loan snag and a permitting issue over construction. The companies maintain that they will get the issues resolved and that the project will go through.
The market is in disbelief, or maybe it is just short sellers getting to put the heat back on the company. Exelon stock is down 0.5% with its $26 billion value. The real damage is in First Solar where shares are down 9% at $44.49 and its market value is now back to just under $3.5 billion.
The Guggenheim Solar ETF (NYSE: TAN) is weighted by more than 10% in First Solar and its shares are down over 7% at $3.48. A bad day for solar indeed.
It was just yesterday that we noted 30%, 50% and even higher gains being pushed up by short sellers covering… Chances are that they got back in today.
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