Energy Conversion Devices (ENER) Crushed 25% AH: "Guidance No Longer Applicable"

Recently, many of the solar stocks have been holding up relatively well in the face of bad news indicating that much of it had been priced in and a bottom in this sector was near.  I still believe that to be the case but their will be hiccups along way such as the Energy Conversion Devices (ENER) poor outlook after the bell today.  The stock is being punished more than 25% in after hours trading.. clearly traders were a bit more optimistic on ENER and didn’t see this coming. 

The company announced that it’s slowing the pace of its demand driven production and expansion plan to better reflect the present impact of credit availability and that because of lack of visibility, its prior 3rd quarter and full year 09 guidance no longer applies.  ENER will implement a 2 week production hiatus beginning March 22nd and will put a freeze on new equipment orders and hiring until demand improves.  In addition, they are consolidating production that will result in the elimination of 70 positions.

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