SMA Solar Technology, Germany’s biggest solar company by market value, fell to a record, its third day of losses since Centrotherm Photovoltaic AG filed for bankruptcy protection.
SMA skidded as much as 8 percent to 21 euros a share, its lowest intraday value since the stock started trading four years ago. The shares have lost 50 percent this year. Centrotherm filed for Chapter 11-type protection on July 10.
“Centrotherm may have pulled SMA down,” Daniel Seidenspinner, an analyst at Bankhaus Metzler, said in a phone interview. “While SMA has a relatively strong balance sheet and is in a better position than Centrotherm, the fundamental problem is that the market is shifting to Asia and the U.S. For SMA, it would be difficult to gain a foothold in China.”
SMA, based in Niestetal, sells inverters, devices that convert electricity from photovoltaic panels for use in the grid. Centrotherm sells machinery to solar manufacturers that have delayed or cancelled investment after panel prices plunged 45 percent the past year, slashing manufacturers’ margins.
SMA’s drop “may tie back to the news about Centrotherm,” said Christopher Rodler, an analyst at MM Warburg Investment Research. “The environment for solar companies is bad at the moment because companies are not investing.”
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