It was a wild ride today for shareholders of SunPower. The stock opened at $7.14 and shot up to $8.14 in 30 minutes and then in an hour it was down around $7.30 a share, which is where it hovered most of day and then closed.
A few things happened with Sunpower stock but nothing that seem to warrant such a odd shot up higher. There was an upgrade from negative to neutral Avian, but that didn’t seem like much to talk about. Sunpower also reclassified of all its outstanding shares of SunPower Class A and B common stock, so now it looks there will be just one chunk of shares to trade. The new stock ticker for SunPower will cut the A and the B and just be: SPWR. So perhaps that had something to do with the odd shot up – a sort of adjustment taking place within the stock.
Solar stocks have been gloomy lately, what with the flood of solar technology by Chinese solar companies, the general economic downturn, and the Solyndra bankruptcy. The prices have for silicon lowered and countries can’t afford to subsidies solar companies due to the slow economy and the Solyndra fail out has only made it worse and less likely. What’s happening, or going to happen is a industry shake up with only the strong surviving.
Back in April of this year, Sunpower’s stock shot up after the French oil and gas company, Total, purchased 60% of the stock for $23.25 a share. However, the stock soon plummeted lower along with the rest of the market.
The hope or wish for most Sunpower shareholders is that Total will go ahead and purchase the rest of the Sunpower shares – the 40% they don’t own.