Major Price/Volume Spike: SunPower (SPWR)

Posted in General 
August 15th, 2008

We are seeing a huge gap up this morning in shares of SunPower Corporation (NASDAQ: SPWR).  After the close yesterday we saw an announcement that SunPower and OptiSolar signed an 800MW photovltaic supply contract with PG&E in San Luis Obispo County in California.  What is interesting is that OptiSolar’s 550MW Topaz Solar Farm was taken entirely for its output, and the other 250MW coming from a solar farm that is a subsidiary of SunPower hasn’t been built yet.  There are also contingencies.

SunPower is getting the benefit of this as though it won the whole contract.  Shares are up 11% at $87.29 on 275,000 shares as of 9:00 AM EST.  The high volatility is probably contributing as its 52-week range is $53.18 to $164.49.  Its short interest of 19.1 million shares at the end of July is adding more fuel to the fire.

JON OGG

August 15, 2008

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