Diamonds and Dogs
6/12/13First Solar Inc. (FSLR)
First Solar is burning up today, down 10.48% at $46.81. The solar panel company saw its shares fall after it announced it would sell more shares. Last night First Solar management said that it would sell 8.5 million new shares of its stock for "general corporate purposes." These purposes could include acquisitions of solar projects already under development, investments in solar power projects, capital expenditures, or strategic investments. The dilution of the shares could reduce the company's EPS by around 10%. Investors seem skeptical of the offering and seem to feel the general corporate purpose might mean financial problems that the company needs to take care of. Shares of First Solar lost over $5.60 a share today, but are well above their 52-week low of $46.67.
Cooper Tire & Rubber Co. (CTB)
Cooper Tire is burning rubber today, up 41.12% at $34.66. The tire company saw its shares jump after news that Indian tire manufacturer, Apollo Tyre, offered to but Cooper for $2.5 billion. The deal represents $35.00 per share or a 40% premium to Cooper Tire's close yesterday. Apollo Chairman Onkar S. Kanwar said: "The combined company will be uniquely positioned to address large, established markets, such as the United States and the European Union, as well as the fast-growing markets of India, China, Africa, and Latin America where there is significant potential for further growth. Our combined portfolio of brands and products will be among the most comprehensive in the industry." Cooper shares reached a new 52-week high of $34.79 intraday.
Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.