Now the solar stocks are being whipsawed around on the kind of mundane news that is the bread and butter of every other industry: contracts, partnerships, delayed deals. A case in point: SunPower (SPWR) secured $190 million from Morgan Stanley for solar electric power installations.
Now, $190 million is nothing to sneeze at, but neither does it justify a 15 percent surge in SunPower’s stock in a single day. SunPower’s market cap increased by $1.3 billion on news of a $190 million facility. That’s a jump in market value nearly seven times as big as the money Morgan Stanley is putting up. And I’m sitting here scratching my head over how that makes sense. Especially if you look at the nature of the deal as explained in the press release: