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The solar sector has had to adapt to the withdrawal of subsidies of the member countries of the European Union. In the United States, the solar sector is at 100% of performance, and in Asia, the Japanese government announced that it was going to give aid to the solar sector by building more than 3.6GW of solar energy.

The companies producing ethanol have seen a fall in their results because of the announcement of the elimination of the subsidies by the government of the United States.

Some companies of the renewable energy sector such as SunPower Corporation (NASDAQ:SPWR), Biofuel Energy Corporation (NASDAQ:BIOF) and Westinghouse Solar (OTCQB:WEST) have many options to take advantage of the demand for new solar installations in Japan as well as of a new change in the policy of the subsidies to ethanol.

In the next article, I will write about the reasons to take a speculative position in these companies.

1. SunPower Corporation

SunPower Corporation is an integrated solar products and services company that designs, manufactures, and delivers solar electric systems for residential, commercial, and utility-scale power plant customers worldwide. It operates in two segments, Utility and Power Plants, and Residential and Commercial. The Utility and Power Plants segment engages in the development and sale of power plant projects, as well as provides turn-key engineering, procurement, and construction (EPC) services for power plant construction; and power plant operations and maintenance (O&M) services. This segment serves investors, financial institutions, project developers, electric utilities, and independent power producers. It also sells solar panels and mounting systems to third parties.

Portfolio

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(SOURCE)

New catalyst

On September 12, 2012, SunPower said it would supply more than 100 megawatt (MW) solar panels to Japan's Toshiba Corp. under a multi-year agreement.

Fundamentals Analysis

Short interest

(SOURCE)

Analyst Research

(SOURCE)

Financials

The company reported the second-quarter financial results on August 8 with the following highlights:

Revenue$595.89MM
Net Income($84.18MM)
Cash$145.20MM

Chart Analysis

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- Rsi is in a good position. The stock is in a bullish channel. The MACD marks an upward trend.

2. Biofuel Energy Corporation

BioFuel Energy Corp. produces and sells ethanol and its co-products in the United States. The company offers dried and wet distillers grains with solubles, corn oil, and carbon dioxide. It operates 2 ethanol production facilities located in Wood River, Nebraska and Fairmont, Minnesota with a combined production capacity of approximately 220 million gallons per year. The company sells its products to independent third party marketers and distributors.

Portfolio

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New Catalyst

- Einhorn's Greenlight Capital said in a filing with the Securities and Exchange Commission that its entities bought 69,382 shares in the last 60 days, raising Einhorn's stake in BioFuel Energy to 36.2 percent.

Fundamentals Analysis

Short interest

(SOURCE)

Analyst Research

Recommendation Summary*

Mean Recommendation (this week):5.0
Mean Recommendation (last week):5.0
Change:0.0

* (Strong Buy) 1.0 - 5.0 (Sell)

(SOURCE)

Financials

The company reported the second-quarter financial results on August 10 with the following highlights:

Revenue$122.82MM
Net Income($10.58MM)
Cash$9.21MM

Chart Analysis

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- Rsi marks an overbought. The MACD marks an upward trend. The stock is in a bullish channel.

3. Westinghouse Solar

Westinghouse Solar, Inc. engages in the design, manufacture, marketing, and sale of solar power systems and solar panels with integrated microinverters in the United States and Canada. Its products are designed for use in solar power systems for residential and commercial rooftop customers. Westinghouse Solar, Inc. sells its products to solar installers, trade workers, do-it-yourself customers, and retailers through distribution partnerships, dealer network, and retail home improvement outlets under the Westinghouse name.

Portfolio

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(SOURCE)

New Catalyst

- Westinghouse Solar Inc., which was bought by CBD Energy, said it would form a joint venture with the Australian renewable energy company to design and build projects in Italy.

Fundamentals Analysis

Analyst Research

Recommendation Summary*

Mean Recommendation (this week):3.0
Mean Recommendation (last week):3.0
Change:0.0

* (Strong Buy) 1.0 - 5.0 (Sell)

Price Target Summary

Mean Target:1.50
Median Target:1.50
High Target:1.50
Low Target:1.50
No. of Brokers:1

(SOURCE)

Financials

The company reported the second-quarter financial results on August 14 with the following highlights:

Revenue$1.2MM
Net Income($2.19MM)
Cash$193k

Chart Analysis

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- The MACD marks an upward trend. RSI marks an oversold.

*Chart data sourced from stockcharts, all other data sourced from Nasdaq.com and yahoo.com as well as the web of the previously mentioned company.

Source: 3 Best Renewable Energy Stocks For This Week (Part I)