Anyone who has invested or is thinking of investing in a technology stock should read Bronte Capital\u2019s explanation of why it is shorting First Solar Inc. of Tempe, Ariz. As Bronte admits, First Solar is a great company. Its breakthroughs in producing low-cost solar panels have changed the economics of the solar-energy industry. Moreover, it is profitable\u2014probably as profitable as the rest of the solar industry put together.<\/p>\n
So why don\u2019t the good folks at Bronte Capital like the firm\u2019s prospects? As they point out, a successful tech company needs to do two things: change the world and keep out the competition. Changing the world is the easy part. It\u2019s the competition that kills.<\/p>\n
Applied Materials Inc.\u2014the nanomanufacturing company that is \u201cthe most important company in the world you have never heard of,\u201d according to Bronte Capital\u2014is taking dead aim at First Solar\u2019s competitive advantages. By Bronte\u2019s reckoning, the technologies that Applied Materials is developing are likely to erase the cost advantage that First Solar has enjoyed, especially when coupled with falling prices for semiconductor ingot. This does not bode well for First Solar, a company that Bronte Capital greatly admires, but that it believes is headed for demise.<\/p>\n
Freelance business journalist Ian McGugan<\/b> blogs for the Financial Post.
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Anyone who has invested or is thinking of investing in a technology stock should read Bronte Capital\u2019s explanation of why it is shorting First Solar Inc. of Tempe, Ariz. As Bronte admits, First Solar is a great company. Its breakthroughs in producing low-cost solar panels have changed the economics of the solar-energy industry. Moreover, it […]<\/p>\n","protected":false},"author":4060,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-517721","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/517721","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4060"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=517721"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/517721\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=517721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=517721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=517721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}