Solar Rises As Senate Adds 'Tax Extender' Legislation to Bailout Bill

Solar industry shares were off to a rousing start Wednesday morning on news that the Senate plans to add the stalled “tax extender” legislation that includes an 8-year extension to the solar investment tax credit to the pending bailout bill for the financial sector.

In a research note Wednesday morning, Cowen’s Robert Stone notes that the Senate will add the tax extenders to the bill, which the Senate is expected to vote on later Wednesday. Vishal Shah, solar analyst at Barclays, asserts in a note Wednesday morning that Senate approval of the bill could be followed by a House vote on the measure as soon as tomorrow. He notes that inclusion of the ITC extension in the bailout package is “an unexpected positive catalyst” for the solar sector.

In early trading:

• First Solar (FSLR) is up $6.25, or 3.3%, to $195.16.
• Energy Conversion Devices (ENER) is up $2.13, or 3.7%, to $60.38.
• China Sunergy (CSUN) is up 27 cents, or 3.8%, to $7.36.
• Evergreen Solar (ESLR) is up 26 cents, or 4.7%, to $5.78.
• Solarfun (SOLF) is up 55 cents, or 5.2%, to $11.08.
• Sunpower (SPWR) is up $6.54, or 9.2%, to $77.47.
• MEMC (WFR) is up $1.17, or 4.1%, to $29.43.

Comments

[longtermstocks:]

Finally they did something

2008 Oct 01 05:20 PM

[nycDem:]

pretty ironic that this thing would've been left in the gutter if the u.s. economy wasn't tanking!

fingers are crossed that the house approves the measure. i bought in big on solar yesterday in anticipation that the senate would vote "yea".

and they did!

so...good for my portfolio AND the environment.

just the way i like it.

2008 Oct 02 12:33 AM

[gebby:]

now that all the good news is out analysts will tell us earnings are in jeapardy and keep selling these stocks although they should be bought. was it not always obvious that legislation would be passed eventually. but wall street has broken the back of these stocks. i hope they rally but there is not much life in them now.

2008 Oct 02 09:03 AM

[NOWHEREMAN:]

Good luck on the non-existent rally, Solar stocks are energy driven and therefore commodity plays. Oil goes down Solar follows.

Solar will continue the Merry way that LNG terminals, ethanol plays, Agricultural plays have in the past few years. They will be savaged by the Bear. Those that went up the most will go down the most. Look for 12 month lows to be revisited by most.

And for those of you who think the Future is bright...pun intended..., there is an old Market Axiom: the leaders of the next Bull market will be not be those of the former.

2008 Oct 02 10:45 AM

[longtermstocks:]

The Chinese symbol for "crisis" is made up of the symbols "danger" and "opportunity".

Crisis can then mean "opportunity" in a time of "danger".

The key is finding the opportunities. I think there is opportunity in ESLR!

2008 Oct 03 06:15 PM

[NOWHEREMAN:]

ESLR, I have followed evergreen for a few years but this is as low as I've seen it. The tech is good, "ribbon" I believe, the Germans funded them for a while but instead of building relations, they built new plants instead. So contracts are coming but earnings are slow because of ongoing construction, the latest is in Connecticut?

The problem for ESLR will be soft commercial and non-existant consumer demand for the next year plus all of the competition which appeared while they were busily building. Consolidation in this industry will occur because there are just too many players. They won't be doing the acquiring but have a chance of being acquired.

2008 Oct 04 02:30 AM