Daqo New Energy (NYSE:DQ) is out this morning slashing guidance for Q2 due to fewer shipments across wafers and modules as well as declining ASP’s. The company now sees revenues in the range of $70 – $71 million vs the previous expectation for $92 – $95 million. They see poly shipments of 970 – 990MT, .7 MW of wafer shipments and 12MW of module shipments.
Shares of DQ were actually trading up at the open quite a bit, but have given back most of the gains. (Whoops! You know you’ve been in Mexico for awhile when you forget it’s 4th of July! That was Friday’s move I was looking at) I’ve been mentioning this over the past couple of weeks and I’ll mention it again.. it appears the worst may be over for solar stocks because the bad news is no longer hitting these stocks and sometimes even leading to a rise in shares. It’s still a bit too soon to jump in though, in my opinion. We need a few more high volume buying days and lower volume selling days to provide a stronger signal that a bottom may be in place. One solar stock that I believe has bottomed out is First Solar (NASDAQ:FSLR) which I mentioned last week.