Diamonds and Dogs
8/30/12
First Solar Inc. (FSLR)First Solar Inc. got burned today, down 18.71% at $19.67. The photovoltaic panel company saw its shares drop after news was released that the company was stopping deliveries to its Agua Caliente project. The 397 MW project in Arizona is well ahead of schedule and construction will stop to meet contractual milestones, according to Bloomberg. The alarm by the market is due to the fact that First Solar has moved up shipments, recognizing revenue on the project maybe artificially early. First Solar relies heavily on large projects such as this one, with this project quickly coming to completion; there is skepticism pertaining to whether the company will be able to sell this year's product. In order to sell its product at the same rate it would need to find more large scale projects.
Pandora Media Inc. (P)
Pandora exploded out of its box today, up 14.29% at $11.52. The internet radio company saw its shares jump as much as 21% after releasing news that its mobile revenue soared 86 percent in the second quarter. Pandora has been attempting to obtain more listeners using mobile as the catalyst to do so, and it has paid off immensely. The pop in mobile users has lead Pandora's management to increase their third quarter guidance. For the third quarter, the company anticipates adjusted earnings will range from break-even to 1 cent per share on revenue of $115 million to $118 million. Analysts forecast adjusted earnings of 1 cent per share on revenue of $114.3 million. The positive news caused Canaccord's Michael Graham to raise the company's rating to "Buy" from "Hold" and lifted its price target to $16 from $13.
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