Why JA Solar, SandRidge Energy, and Ballard Power Systems Slumped Today
Wednesday was tough for the stock market, as major benchmarks once again pulled back, extending a losing streak. A triple-digit loss for the Dow Jones Industrial Average and similar-sized declines on a percentage basis for other popular indexes reflected the growing uncertainty about the sustainability of the bull market, which is looking to finish its ninth year of nearly straight-up movement. General issues like political strife and economic policy challenges weighed on sentiment, but some company-specific problems also hit certain individual stocks hard. JA Solar (NASDAQ: JASO), SandRidge Energy (NYSE: SD), and Ballard Power Systems (NASDAQ: BLDP) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of JA Solar plunged 13% after the solar panel manufacturer reported poor quarterly financial results. Revenue climbed 4% on a more-than-30% jump in external shipments of solar modules and cells, but the company saw margin levels fall, sending net income down from year-earlier levels. More troubling was the fact that the period provided a favorable environment for the solar industry, as demand for panels has been relatively high, supporting strong pricing practices among suppliers. With those favorable conditions potentially coming to an end in 2018, JA Solar could face even more trouble in the near future.
Image source: JA Solar.
Source: Fool.com
