Tomahawk, WI 3/25/2013 (Expedated) – As the saying goes, what goes up, must come down and these stocks wish they had never heard that pharse.

Failing to win a lawsuit is a sure fire way to start a  downward slide in value and that is just what is happening with Idenix Pharmaceuticals Inc. (IDIX), as they have taken it on the chin so far this morning down over 15%. This swing comes after the company lost a decision over whether it or Gilead Sciences Inc. (GILD) was first to request a patent related to hepatitis C treatments.

The result of the lawsuit comes down to The U.S. Patent and Trademark Office determined that Idenix’s application for compounds used to treat hepatitis C was filed later than Gilead’s, Idenix. This statement was released last Friday March 22. The patent office’s determination makes Gilead Sciences the “senior party” in this case and Idenix the “junior party.”

Idenix said it doesn’t believe the application at issue is relevant to any of its compounds under development. Idenix plans to begin the second of three phases of clinical trials on one of its hepatitis C therapies, IDX719, in the first half of this year. Idenix fell 55 percent in the 12 months through last week.

Some people are saying that the Chinese solar industry is too big, and that the  government is moving in the right direction forcing the market to consolidate.

This could be true as we see three Chinese solar companies that have been and are moving in the wrong direction. Trina Solar Limited (TSL) is off some 13% today as a recent report from Credit Suisse estimates that Trina Solar, which has been one of the better performing names in the sector, needs to post a profit of 10 cents per watt to break even.

If you take the average cost of 60 cents per watt, this would mean a profit of 10 cents requires a gross margin of approximately 17%. The company is not even in the ballpark with those numbers and in the most recent quarter, the company reported a gross margin of 1.9%. In other words, if even Trina is that far away from profitability, then imagine how bad the rest of the industry is faring.

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