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Following is the list of top tech losers from yesterday:

Company

Ticker

% Gain

Sanmina-SCI

SANM

-20.52%

Energy Conversion Devices

ENER

-7.14%

Evergreen Solar

ESLR

-9.49%

Oplink Communications

OPLK

-8.28%

Opnext

OPXT

-8.02%

Here are some of the specifics about these stocks, and what to expect from them going forward.

Sanmina-SCI Corporation fell 20.52% after it reduced its sales outlook by 4% to $1.56-1.60 bn (vs. prior $1.62-1.67 bn) and EPS outlook by 28% to $0.28-0.32 (vs prior $0.40-0.43). The company attributed the shortfall to three things: The delay in defense orders due to budget uncertainties; a labor strike in India; and an inventory correction in optical markets. The company also announced the resignation of its COO, Hari Pillai, who will now serve in a consulting capacity.

Most of the problems the company is facing are temporary in nature and its long-term thesis remains intact. However, uncertainty surrounding the timing of orders will likely be an overhang on the stock in the near-term. It would be prudent for investors to stay on the sidelines now and enter the stock once some visibility over the orders comes.

Energy Conversion Devices and Evergreen Solar fell 7.14% and 9.49%, respectively. In all likelihood, given their challenged balance sheets, both of these companies would be required to raise significant cash this year. Given the challenge of the solar PV market, it will likely cause significant equity dilutions. We are negative on solar stocks due to policy uncertainty in Europe and potential oversupply concerns in the second half of this year. However, if one really wants to go long on solar stocks (in the wake of the Japanese nuclear disaster and the secular shift that might take place), my suggestion is to go for U.S. solar stocks like First Solar (NASDAQ:FSLR), GT Solar (SOLR), MEMC (WFR) and avoid companies like Energy Conversion Devices, Evergreen Solar, Power-One (NASDAQ:PWER), Sunpower (SPWRA), which have significant European exposure.

Oplink Communications and Opnext were down 8.28% and 8.02%, respectively. The stocks are on a downward trajectory after a disappointing outlook from Finisar (NASDAQ:FNSR) a week ago. Weak pricing, a slowdown in China and inventory corrections are likely to weigh on the sector as a whole going forward. These stocks are likely to continue underperforming in the near-term.

Source: Top Tech Losers From Yesterday and What to Expect Now