Earlier this week we mentioned that the bankruptcy of Econcern might be a problem for First Solar (FSLR). Through a FBR research report, we noted that Ecostream, a subsidiary of Econcern, is a big customer for First Solar.
Now, another analyst is making the same noises. Barron’s writes, “According to Gordon Johnson, an analyst at Hapoalim Securities, Ecostream recently has accounted for 7%-8%.” Couple this developing story with the scandal over land permits from the BLM and it helps to explain the big hit First Solar has taken this week.
The worries over Econcern could be for naught. New Energy Finance says it thinks buyers will snap up the solar portfolio of Econcern, which includes Ecostream. Also, Pacific Crest says that FSLR is still the panel of choice in Europe, even with falling polysilicon prices.
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