Applied Materials solar plans a risky bet-Barron's
NEW YORK, April 13 (Reuters) - U.S. chip-maker Applied Materials (AMAT.O), which is increasing its focus on solar-power panels amid a downturn for semiconductor demand, could end up burning investors, Barron's reported in this week's issue.
Barron's says Wall Street is split whether the move into solar panel production is a good bet: bulls see the stock zooming to $60, while skeptical bears argue the solar strategy is just an experiment and has no market value.
The problem, Barron's said, is that there is scant evidence for investors to review. The first customers will not try production until summer and no one has yet demonstrated how to install panels from Applied Material's SunFab unit, the weekly investments newspaper said.
Barron's concluded that investors should steer clear of the stock, which closed Friday on the Nasdaq at $19.11 per share, until there are results to analyze. (Reporting by Joseph A. Giannone, editing by Leslie Gevirtz)
