Shares of First Solar cooled Wednesday after the solar panel maker said it planned to sell 8.5 million shares in a secondary stock offering.
Secondary offerings are always good news-bad news situations.
First the good news. First Solar's stock has rallied nearly 70% this year, ahead of the offering. Demand for solar panels has been growing. The company swung to a profit in the first quarter.
That creates prime conditions for the company to raise capital through a secondary offering -- a healthy and prudent move.
Now the bad news. Well, it's not really bad news per se. You'll often see a company's stock fall after a secondary offering because it increases the number of shares outstanding and cuts back, or dilutes, the ownership stakes for existing investors.
Investors are a fickle bunch. While it's probably a good thing in the long run, no one likes to see their ownership watered down.
All of this offered plenty of fodder for StockTwits traders to chew on.
Eight is great! But there are more analysts than underwriters for First Solar.
Maxim Group kept its sell rating on the stock and a $42 price target. They say the offering doesn't "meaningfully alter" their view of First Solar.
Ha. Short interest is actually down about 15% in June. But looking at the ebbs and flows of bets on a stock decline, we'll probably see some shorts coming out of the woods soonish.
Maxim analysts were cautious about the stock offering. They say it will be "dilutive" to earnings, so that may attract some of those downside bettors.
That premarket move definitely wasn't looking pretty but the stock seems to be making a comeback. While it fell nearly 6% once trading opened, shares are now down only 2%.
You know what they say: Hindsight is always 20-20.
Maxim thinks the company needs to be booking more business. The capital inflow will help First Solar bring some undeveloped projects to fruition but it remains to be seen whether that will be enough to offset the dilutive impact on its earnings.
SodaStream lost some of its fizz Thursday after PepsiCo debunked rumors that it might buy the soda maker.
Earlier this week, shares of SodaStream (SODA ) rallied on chatter that Coca-Cola might be interested.
If either panned out, it would be somewhat ironic. Earlier this year, SodaStream's Super Bowl ad, which touted its reusable bottle in a diss to Pepsi (PEP) and Coke (KO), never aired.
JPMorgan analyst John Faucher said it was MORECatherine Tymkiw - Jun 6, 2013 11:25 AM ET
Amazon may have started out as an online bookseller but the Seattle-based company has quickly evolved into the world's largest online retailer. And now Amazon is looking to take over the online grocery business.
According to a Reuters report, Amazon is "planning a major roll-out of an online grocery business that it has been quietly developing for years."
Amazon (AMZN) has been experimenting with grocery delivery service AmazonFresh in the Seattle area MOREHibah Yousuf - Jun 5, 2013 1:55 PM ET
Shares of Tesla Motors drifted higher Tuesday ahead of the electric car company's annual shareholder meeting.
Tesla (TSLA) shares have surged more than 180% this year, although the stock has pulled back from a high above $110 last month.
Investors are keeping an eye on the meeting for any announcements that could drive the stock back up, but so far the news has been pretty dull.
Tesla executives apparently discussed the company's warranty MOREBen Rooney - Jun 4, 2013 3:30 PM ET
The opinions expressed in this commentary are solely those of Paul R. La Monica. Other than Time Warner, the parent of CNNMoney, Abbott Laboratories and AbbVie, La Monica does not own positions in any individual stocks.
Windows 8 and the Surface tablet haven't exactly set the world on fire. Microsoft's new Xbox One game console hasn't gotten fantastic reviews either. And a lot more people Google themselves than Bing it.
But don't MOREPaul R. La Monica - May 30, 2013 12:34 PM ET
As markets around the globe remain steeped in red, one stock is bucking the trend: Hewlett-Packard (HPQ).
HP is riding the wave of Meg Whitman's turnaround plan. The CEO said she's "encouraged" by the results so far, but cautioned it will take some time.
The company reported earnings late Wednesday that topped notoriously low forecasts and issued an improved profit outlook. So, even though sales are still not quite up to par, MORECatherine Tymkiw - May 23, 2013 11:26 AM ET
SodaStream shares jumped 13% Tuesday, as investors welcomed the company's upbeat outlook and analyst upgrades.
"Our goal is to be a billion dollar company by 2016," said CEO Daniel Birnbaum, at SodaStream's very first analyst meeting. That would nearly double the $550 million the company expects to rake in this year.
The optimistic CEO suggested that he thinks the company could hit the milestone even earlier, as consumers continue to embrace the MOREHibah Yousuf - May 14, 2013 1:44 PM ET
Talk about a warm-up.
Investors can't seem to get enough of companies that harness the sun's power. Shares of SolarCity (SCTY) soared to an all-time high of $31.89 on Monday.
The company has only been public for five months and shares have nearly quadrupled from their $8 IPO price back in December.
Related: SolarCity CEO talks the future of solar power
SolarCity, which installs solar panels, is still among the smaller players MORECatherine Tymkiw - May 13, 2013 11:24 AM ET
Alex Ferguson's decision to retire after 26 years as manager of Manchester United (MANU) throws England's most successful soccer club into a rare period of uncertainty.
Winning the richest national soccer league for 13 of the last 21 years has guaranteed a big slice of broadcast revenue, and allowed the club to amass a global following of over 650 million – a loyal and lucrative market for merchandising partners and sponsors MOREMay 8, 2013 12:10 PM ET
No cruise control for Tesla.
Shares of the electric car maker took off Tuesday, racing to a new high above $60 right out of the gate. But by late morning, the enthusiasm had chilled, and the stock was down about 3%.
The supercharged moves come one day before Tesla (TSLA) is set to report its first quarterly profit ever.
And it's all thanks to the all-electric Model S.
The full-size, four-door luxury sports sedan was MORECatherine Tymkiw - May 7, 2013 11:12 AM ET
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