SunPower Slides; Estimates Still Falling; Time To Cover? (SPWRA)

From Tech Trader Daily:

SunPower (SPWRA) shares are down sharply today as the Street braces for the worst when the company reports Q1 results after the close on Thursday.

Mehdi Hosseini, analyst at Friedman Billings Ramsey this morning asserted in a research note that his checks find that Suntech (STP) has become incrementally more aggressive with its pricing strategy, especially in the U.S., as it tries to gain more market against U.S. rivals like SunPower. Hosseini writes with exasperation that he had hopes to become more constructive on the sector by now, but that “continued weakness in end-market demand, uncertainties associated with the business model for both SPWRA and First Solar (FSLR) and increased downside risk to company management guidance/consensus estimates are keeping us on the sidelines and actually have us incrementally more cautious into Q1 earnings.”>>>MORE