for a 46% premium
The deal values SPWRA at a 46% premium. This will begin an ascension in solar share prices across the board.Great news for the whole sector. Obviously, a deal like this validates the industry.
AND it appears they're only taking over 60% of the company.
but why is rest of the solar going up?
Dude, if you don't know then maybe you shouldn't trade stocks.Then again, it's all about timing and dumb luck.The thought is that the Solar industry will consolidate and that undervalued stocks, like YGE, will be purchased at a premium. So, based on future P/E, YGE might get bought at 18 a share.This is all specualtion of course, but that drives that market.Shorts will need to cover if they fear this and that will make the stock go way up in the near term at least.
It's good for the whole sector. Consolidation. Just like when Texas Instr bought out NSM, i owned MRVL and it shot up.