Solar Stocks Show Signs of Life

Solar stocks capped a fantastic week with every solar stock except one (WFR) clocking a double digit gain. This seems like the best week solar stocks have had this year but are still far off from where they started in 2008.

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The biggies, First Solar (FSLR), Suntech Power (STP) and Sunpower (SPWR), all made impressive comebacks. I am kicking myself for not buying Suntech Power (STP) when it was in the 30's. I was closely watching it and was hoping to enter Suntech in the high 20’s. Well, before I knew it Suntech goes from 30 to 40 in a week.

The question is have the Solar Stocks turned a corner here? I don’t have the answer. Do you? Do you see this as an opportunity for a short-term short, or are you planning to go Long?

Disclosure: No holdings in any of the above mentioned stocks

Comments

[gebby:]

the multiples of these stocks are NOT high. despite supershot. he is a bear

2008 Mar 31 09:32 AM

[dicki31785:]

first of all those are trailing PE's supershot and if you look at the growth rates of these firms you will realize that those numbers are absolutly irrelevant....and @Phily Jim....just because in america you rather subsidize oil and gas firms for some reason doesnt mean their is not a market out their(just that market is not in america, so far, rather than that in spain, germany, and soon italy will boom too so take a look at spwr which positioned itself very well in italy as well due to a takeover of an italian firm)....and maybe it is wiser to subsidze alternative energies rather than to start a war for energy resources in other countries....saves a lot of money and more importantly lives...with kind regards from Germany

Disclosure: Long SPWR, CSIQ, and STP

2008 Mar 31 09:53 AM

[User 170287:]

"SOL" entry point now. Target $18 by Lazzard

2008 Mar 31 10:00 AM

[gebby:]

As further proof of the viability of solar's business model, there are big tech companies that have offer exposure to solar, such as Applied Materials (AMAT). The company recently announced that it had signed a $1.9 billion deal to supply and install equipment for "multiple solar factories" for a private company based outside of the United States.

Notwithstanding the recent pullback in stock prices, solar does indeed have a sunny future. Solar is still very early in its growth stage, and solar companies, particularly the producers of solar silicon and integrated modules, will experience more volatility as they navigate roadblocks such as supply constraints and market demand. Most of today's existing solar technologies are becoming more efficient and more affordable, and emerging technologies and manufacturing methods promise to keep the sector going strong. Even though solar stocks have taken a serious hit, that isn't a sufficient reason to sour on the long-term potential of the sector.

2008 Mar 31 11:37 AM

[gebby:]

a 70's pipe dream? India unveils more incentives for solar power - EE Times

EE Times reports India's renewable energy ministry has announced a new program designed to expand solar power generating projects up to a maximum capacity of 50 megawatts. Solar developers who build, own and operate projects will be supported with financial incentives of about 30 cents for each kilowatt of solar power generated per hour. Incentives for thermal power fed to power grids would be slightly less, according to a govt statement. Faced with inadequate power generation and big transmission and distribution losses, the Indian govt wants to generate at least 10% of its electricity through solar power by 2012. A total of 33 solar photovoltaic power plants connected to the Indian power grid have already been built with govt support. The plants are expected to generate 2.55 mln units of electricity annually.

2008 Mar 31 01:03 PM

[frflyer:]

Solar bears or skeptics like Philly Jim have been fooled like a lot of Americans by the mountain of dis-information coming from those whose interests are threatened by alternative energy.
And example is a talking head on FOX news a few months ago, who said solar couldn't propel a small sailboat, never mind contribute meaningfully to America's energy needs. Of course no one at FOX challenged this statement.
Not supprising since FOX is one of the major disseminators of dis-information.

from Green Wombat
"Abu Dhabi is not content to just sell you the oil that
fuels your SUV; now its going to sell you sunshine to
keep your lights on and power your electric car
when the internal combustion engine goes the way of
the buggy whip. Masdar, the oil-rich emirate’s $15
billion renewable energy venture, and Spanish
technology company Sener on Wednesday announced
a joint venture called Torresol Energy to build large-
scale solar power plants in Australia, Europe, the
Middle East, North Africa and the United States."

"The irony is too rich to leave unsaid: A leading oil
producer invests billions in carbon-free energy while
a leading consumer of fossil fuels - the United States
- continues to subsidize Big Oil while while offering
only tepid support for green technology."

Maybe Americans will wake up soon enough to see the oppurtunities they are throwing away, along with their money wasted on the $800 billion annual hidden costs from oil, and the $80 billion annualy given to oil comanies.

That's the other part of the propaganda, pretending that alternative energy will need too much in the way of subsidies, which are miniscule compared with the subsidies for oil, gas, coal and nukes.

Sources.
www.setamericafree.org...
www.monitor.net/monito...
www.progress.org/2003/...
www.eoearth.org/articl...

2008 Mar 31 01:15 PM

[svosavvy:]

America doesn't need to wake up for solar to be good, the rest of the world is going to take us to the woodshed on this one (just look at the socialistas in spain). Just look at Brazil now whos laughing in the game of energy independance. These companies represent the next generation, panels aren't so ugly anymore just look at the BIPV (building integrated photovoltaic) this is not your fathers solar panel. Some of the offerings from STP look like actual skyscraper windows and are actual roofing grade material, not some hunk of junk sitting on top of the roof. Hey, by all means keep playing negative sentiment then I can get more on the cheap.

2008 Mar 31 01:55 PM

[supershort:]

SPWR has not reported any insider activity through the SEC in the past year. It may have reported transaction activity through other regulatory bodies. As a result, the activity below may not reflect the complete activity by the company's insiders.


Monthly Share Rotation Number of Shares Value of Change Percent of Shares Outstanding
Buyers 3/29/08 60,850 $3,999,062 0.80%
Sellers 3/29/08 1,973,109 $129,676,678 3.00%

You guys really need to wake up. There are many "good clean in favor" companies out there. I am not a bear because I don't believe global warming is real. It is real, but we may not have a choice anyway. The earthg was probably meant to be warmer anyway. Look at the prehistoric times. Just because as meteor hit the earth and caused the ice age, we have been getting warmer since. No new news.

I would purchase solar panels if they were right for me, and all should do the same. But if you are an investor or trader, these are totally crap fundamentally. Look at MSFT, IBM, EBAY, GOOG any company that made it. There were massive insider buying, NOT SELLING. I am following the lead of the insiders and institutions which clearly is to sell.

2008 Mar 31 02:39 PM

[dicki31785:]

These guys get paid mostly in shares.....you should also take that into account

2008 Mar 31 03:00 PM

[User 170287:]

Get "SOL" before it shoots up higher and higher

2008 Mar 31 03:29 PM

[supershort:]

Institutions also? They are selling also. They are all cutting their positions because the massive residential buildout will not occur this time also. Maybe if they were 7 years earlier during the housing boom, good ecomomy and cheap money. Now the only thing we have is cheap money, but the bank won't give you a loan for such a big ticket, speculative item for your home.

As far as these going to Home Depot. Never until the prices come down alot. They won't for some time as these companies want to bleed the governments first.

SOL is a China stock. I am a free market kind of guy. No company that is owned by a government will be longf in my portfolio, especially a communist one. Isn't that the biggest oxymoron out there, China stocks. They beat up on Monks, subjugate their people, violate all child labor laws out there, pollute like there is no tommorrow. Yep, sure give me a few thousand shares.

2008 Mar 31 03:56 PM

[User 170287:]

I understand but will you pay the bills

2008 Mar 31 04:05 PM

[User 170287:]

GO "SOL"

2008 Mar 31 05:55 PM

[kkin365:]

What happened to LDK? And TSL? For supershort, I wish him/her well -- and wish to suggest him/her to a front-page article in today's New York Times, on Chinese nationals' attitude in the incidents to which he/she referred.

2008 Mar 31 10:17 PM

[windinmyface2:]

At the present, I'm getting burned on SOLF. I bought it at $25.35 with talk of as much as $80.00. It hit $40.00 in January, then the bottom dropped out, so I will wait, and hope to break even.

2008 Apr 01 01:22 AM

[windinmyface2:]

No more Solar for me.

2008 Apr 01 01:23 AM

[cswalker21:]

Anyone know if all the companies on that chart are in PV solar? Are there any Thermo-solar pure plays out there? I think Thermo-solar is where the future is, since that is more economical for large-scale grid-connected implementations.

2008 Apr 01 06:09 PM

[action jackson:]

MEMC (WFR) likely did not experience the recent surge that the other solar companies did becuase it wasn't as heavily shorted. For those of you too jittery too play these solar stocks, MEMC is one that offers a more certain investment, less risk. Solar is not their only business, and this company will be around a long time.

2008 Apr 02 02:01 PM

[Ames Tiedeman:]

Action, your MEMC is now down 12% in pre-market.

2008 Apr 03 07:19 AM

[supershort:]

Thanks kkin365. I am still adding puts to my short position. I am fortunate that the stock can still run up a bit more before I start getting a fed or margin call, so for now I am hanging in and looking forward to the next miss of their earnings on April 17th. They missed in January and with the huge jump in jobless claims 407,000, and the retailers going to be hurting, I can't possibly see the retailers going forward with their plans, as was announced by Macy's. They may start to consider closing stores, so why would they invest a tremendous amout of money if they may close/sell stores.
As far as China and the article:www.nytimes.com/2008/0...

Yep, I am eight thousand percent sure they follow standard accepted accounting principles for their government companies. Who are their accountants...Hou, Wi, Foo, Kum & Hasol?

2008 Apr 03 01:09 PM