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Shareholders of First Solar Could Recover Losses

InvestorLawyers

Securities fraud attorneys are investigating possible claims for shareholders of First Solar. First Solar shareholders may have sustained significant investment losses as a result of overconcentration in First Solar stock shares. In July 2008, First Solar shares traded at more than $300 each. However, after a significant decline, First Solar is now trading at around $30 per share. Of course, this roughly 90 percent decline has resulted in significant losses for many shareholders.

Shareholders of First Solar Could Recover Losses

Investment fraud lawyers have long been aware that holding concentrated positions in a single sector or security can result in significant investment losses for high net worth and ultra-high net worth investors. In some cases, client portfolios have been mismanaged and risk management strategies could have protected the investor’s concentrated portfolio. These risk management strategies include protective puts and collars, stop loss and limit orders. These strategies provide accounts with an exit strategy and downside protection in the event that the stock suffers a decline in value, such as what has happened with First Solar. A “zero cost” collar is one example of a hedge strategy. This collar creates a value range maintained by the portfolio, despite the fluctuating of the price of the underlying stock.

A failure to hedge, or to utilize risk management strategies, exposes investors who hold concentrated stock positions to dangerous fluctuations in securities markets. Furthermore, if you are not a high net worth investor, but were recommended an investment only suitable to said investors, your broker made this recommendation unsuitably and you may have a valid securities arbitration claim.

Investment fraud lawyers are here to help investors who have suffered losses as a result of fraud or negligence on the part of their broker or adviser. To find out more about your legal rights and options, contact a securities fraud attorney at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.

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