David White

German Subsidy Fears Trigger Solar Downgrades

Oil is down more than $4 per barrel today. This likely accounts for the big losses in most energy stocks. It seems likely there will be a slight bounce tomorrow in both oil and in energy stocks. FSLR is butting up against the bottom of its bottom Bollinger band. this makes the likelihood of a rally off of this point an even stronger possibility. Recent rallies of FSLR off of bollinger band bottoms have been 50 points or more within the space of about a month. Will this happen again?????

German Subsidy Fears Trigger Solar Downgrades

When you look at the amount of the U.S. trade deficit due to oil importation (and this seems to be growing quickly to the glee of the arab nations), you quickly see what a slippery slope not encouraging alternate energy is for a net importer of oil and gas. Germany likley will decide it needs to keep its subsidy policy in place (or perhaps even better it). The U.S. certainly needs to encourage solar much more than it has. We all know why the dollar goes down in relation to the Euro when the price of oil goes up. I find it hard to believe the Germans are foolish enough to back away from a policy that is clearly working in their favor.

German Subsidy Fears Trigger Solar Downgrades

STP issued $500,000,000 in convertible notes. That's a good reason for it to go down. As for this Germany solar policy speculation. It is just that so far. Germany has many things to consider. If Germany does not encourage the adoption of solar, they will have to pay for oil or uranium or natural gas in the future. Any of those alternatives will likely cost their tax payers more than the solar subsidy. Those alternatives are all likely to increase in price over time. Germany would likely be better off in the long run not to decrease the solar subisdy. Of course, you haven't even mentioned the Kyoto issues at this point, which are still yet another good reason for Germany to keep their solar subsidy.