Founder Group Plummets 34% Amid Solar Project Hype and P/S Ratio Concerns: What’s Driving the Volatility?

Summary
• Founder Group (FGL) plunges 34% intraday, trading at $0.6139 after opening at $0.7891
• Company announces RM1.16 billion solar-plus-storage project in Malaysia, yet shares hit 52-week low of $0.5885
• P/S ratio of 0.8x lags industry peers, despite 259% revenue growth over three years

Founder Group’s stock has imploded on Thursday, shedding over a third of its value in a single session. The sharp decline follows a flurry of bullish news, including a landmark solar project in Malaysia, yet the market appears unconvinced. With technical indicators flashing bearish signals and a sector backdrop of mixed performance, investors are left scrambling to decipher the catalyst behind this dramatic move.

Solar Ambitions Clash with Revenue Realities
Founder Group’s 34% intraday collapse reflects a stark disconnect between its ambitious renewable energy projects and underlying financial performance. While the RM1.16 billion solar-plus-storage project in Sarawak positions FGL as a regional green energy leader, the market is fixated on its deteriorating fundamentals. The company’s P/S ratio of 0.8x—well below the industry average of 1.4x—signals investor skepticism about its ability to sustain recent revenue growth. Despite a 259% three-year revenue surge, the last year saw a 39% decline, raising concerns about operational consistency. This volatility is compounded by a dynamic PE ratio of -16.89, highlighting unprofitability amid aggressive expansion bets.

Renewable Energy Sector Splits as NextEra Rises
The Renewable Energy sector remains fragmented, with NextEra Energy (NEE) bucking the trend by rising 1.2% on Thursday. While FGL’s collapse underscores sector-specific risks tied to unprofitable growth, NEE’s performance highlights the disparity between established players and high-risk innovators. FGL’s solar-focused strategy contrasts with NEE’s diversified utility model, exposing the market’s preference for stable cash flows over speculative green energy bets. This divergence suggests FGL’s valuation struggles are more company-specific than sector-wide.

Bearish Technicals and No Options: Navigating FGL’s Freefall
• 200-day MA: $1.3354 (well above current price)
• RSI: 33.73 (oversold territory)
• MACD: -0.0181 (bearish divergence)
• Bollinger Bands: Price at $0.6139, far below lower band of $1.0117

FGL’s technicals paint a dire picture. The stock is trading at a 52-week low and has broken below critical support levels, with the RSI in oversold territory suggesting potential for further downside. However, the MACD’s negative divergence and Kline’s bearish trend indicate a lack of immediate rebound momentum. With no options data available, traders should focus on ETFs like the Invesco Solar ETF (TAN) for sector exposure, though FGL’s standalone volatility makes it a high-risk play. A 5% downside scenario (targeting $0.5832) would test the 52-week low, but liquidity concerns and lack of short-term catalysts argue against aggressive positioning.

Backtest Founder Group Stock Performance
Below is an interactive report that summarises the back-test you requested. Key implementation notes (for transparency):• We treated “-34 % intraday plunge” as: (high – low) / high ≥ 34 %. • Entry: buy FGL (next bar close) on each signal day. • Risk controls (chosen as reasonable defaults for a crash-rebound idea): – 100 % take-profit (captures any sharp rebound) – 25 % stop-loss (limits further downside) – 20-day maximum holding period (focus on short-term recovery) • Price series: 2022-01-01 → 2025-09-26, close prices. Overall, the approach delivered a –57 % total return with a 74 % maximum draw-down, indicating that mechanically buying after such extreme intraday drops in FGL has been unfavourable during the test window.You can explore full metrics, trade list, and equity curve via the module:Feel free to browse the module for full detail or let me know if you’d like to tweak assumptions (e.g., different risk limits or holding horizons).

FGL’s Freefall: A Cautionary Tale for Green Energy Optimists
Founder Group’s 34% plunge underscores the fragility of its business model despite high-profile projects. While the RM1.16 billion solar initiative in Malaysia is transformative, the market demands consistent revenue growth and profitability to justify its valuation. Investors should monitor the 52-week low of $0.5885 as a critical support level and watch NextEra Energy’s 1.2% rise for sector sentiment clues. For now, FGL remains a speculative bet, with technical indicators and fundamental risks aligning against near-term recovery. Aggressive traders may consider shorting FGL if it breaks below $0.5885, but the lack of options liquidity and volatile fundamentals make this a high-risk proposition.