IPO traders and investors are probably wishing they never heard of GT Solar International Inc. (NASDAQ: SOLR). The company fell roughly 12% yesterday but that is just the start of it. Right after the open today we are seeing an unbelievable drop of more than 30%. We questioned the timing of this one yesterday, but apparently not enough.
It seems that the entire share sale being by the parent company isn’t arecipe that traders and investors are going to endorse even if it issupposed to be a hot solar power provider. The underwriters were listedas Credit Suisse, UBS, Banc of America, Deutsche Bank, Piper Jaffray,and Thomas Weisel Partners. Their legal departments are probablygetting ready for some calls today.
At 9:37 AM EST we have seen some 3.3 million shares trade and the lastprint was down 34% at $9.54. This was given a mid-point pricingyesterday at $16.50.
The current IPO market has been very quiet and we could even call it an Upton Sinclair Meets GNR market. Welcome to the Jungle.
Jon C. Ogg
July 25, 2008
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