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First Solar Rallies On Topaz Sale To Buffett

|Includes: BRK.A, BRK.B, First Solar, Inc. (FSLR)

Shares of First Solar (NASDAQ:FSLR) rallied nicely on Wednesday on news that the company has sold its interest in the California based Topaz project to MidAmerican Energy, a subsidiary of Warren Buffett's Berkshire Hathaway (BRK.A, BRK.B), for $2 billion.

Shares of First Solar rose more than 8% to $50 in late morning trading, but were near $52 shortly after the open. Shares have taken quite a beating lately after the industry has seen demand issues and price cuts, as well as the Solyndra bankruptcy and fraud.

Now, First Solar has lowered 2011 guidance in each of its last two earnings reports, and that has been a catalyst for the fall in the stock. Estimates for both this year and next continue to come down.

The trade recently in First Solar has been to short it on any pops, so we'll have to see if the trend continues, or if this is the catalyst to get the stock going. First Solar is a good company in a bad industry right now, and with other solar names continuing to be hit, First Solar could continue to decline, even if the company is doing well.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.