The stocks in this story include First Solar (FSLR).
President Obama in his speeches has repeatedly conjured up the vision of thousands of jobs created in the solar industry. Obama has been focused on providing subsidies to solar power in a manner that does not seem to work and at the same time Republicans have been more focused on fighting Obama than helping the green energy industry in America.
While Obama and Republicans engage in a kindergarten style brawl, China is slaughtering the American solar industry.
Take a look at First Solar (FSLR) chart from this afternoon during which, First Solar lost 25% of its already depressed market value in a matter of two hours.
The immediate news is that Rob Gillette, CEO of the company has been
replaced by the chairman, Mike Ahern, on an interim basis. First Solar
did not provide any details but the handwriting was on the wall.
Recently, there has been considerable anecdotal evidence that First Solar is no longer competitive with Chinese imports. As a result, First Solar facilities are being underutilized and large scale layoffs may loom.
It was not that long ago that First Solar was considered the beacon of American innovation. First Solar was the second largest manufacturer of solar cells in the world in 2010. In 2011, the company ranked first on Forbes’ list of America’s 25 fastest growing companies.
First Solar has been a leader in thin film photovoltaic modules using cadmium telluride. In the past, these modules have been less expensive to manufacture than the ..Read More..
