More Short Covering Bolsters First Solar & Peers (FSLR, EXC, SPWR, WFR, TAN)

First Solar, Inc. (NASDAQ: FSLR) has become Wall Street’s whipping boy and was recently considered the worst S&P performer over the last year.  After shares recently were challenging $20.00, the stock would have almost been considered a busted IPO if it had not been public for so long.  The low of $20.02 this week was an all-time low.

Now the deal with Exelon Corporation (NYSE: EXC) appears to have been funded by the Department of Energy and that start one monster covering effort by short sellers that is carrying over again today.  The stock’s move to above $23.00 amounts to a 15% move if you include the 7.7% move today.  That is nothing considering how much the drop has been as this was above $150 earlier last year.

A review of the NASDAQ short interest showed some 21.23 million shares short at the most recent settlement date (March 15).  That is not the largest absolute share count in the short interest and it certainly is not the highest “dollars short” by any means, but it is still a large bet against the company.

A rising industry leader causes all ships to rise and we are seeing that today.  SunPower Corporation (NASDAQ: SPWR) is up 7% at $5.95 on thin volume and MEMC Electronic Materials Inc. (NYSE: WFR) is up 10% at $3.67 on heavy volume.  Guggenheim Solar (NYSE: TAN) is up 4.5% at $23.17.

JON C. OGG