Is It Safe? Evergreen Solar's Burning Out

"Is It Safe?" is a daily feature by TheStreet.com Ratings that looks at a company's risk-and-reward potential. Find out if your stocks are safe each morning at 4.

Everything about Evergreen Solar(ESLR Quote) is eco-friendly, from its mission to harness sunlight to the way it makes its solar panels. But as an investor, I'm more concerned about the other kind of green.

Shares of the Marlborough, Massachusetts-based company have dropped 32% this year even as the 51-member Wilderhill Clean Energy Index gained 19%. Excess capacity and pricing pressure caused the solar company to post a $64.2 million loss in the first quarter as its operating margin sank further into negative territory.

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