Diamonds and Dogs


First 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.

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