Solarfun Power Holdings Co., a leader in PV cell and module manufacturing, experienced Thursday considerable fall of its stock due to overpricing policy.
The company’s shares swooped at first $3.18, or 12 percent, to $23.32, and the latest trading at 2:19PM showed further decrease by $4.99, or 18.83 percent, to $21.50.
The stock fall eliminated the previous enthusiasm over significant gains from the past several days. Since closing May 12 at $14.94 the company has gained the 75 – percent growth of its shares.
Rapid growth of Solarfun shares provided the company with high expectations for large first-quarter earnings. But preliminary results estimated the stock as overpriced and unwarranted in "premium valuation".
Solarfun’s first-quarter profit constituted $15.3 million, or 32 cents per ADR.