The United Nations Climate Change Conference is being held in Poland this week. Representatives from the top four Photovoltaic ((PV)) makers gathered in Poznan to propose the rapid implementation and expansion of policies designed to support the growth of the solar industry and the global adoption of solar technology as a major contributor to greenhouse gas ((GHG)) reduction in support of global climate goals.

As the top two solar companies, Suntech Power (STP) and First Solar (FSLR) dominate the European and U.S. markets respectively. According to Suntech CEO Dr. Zhengrong Shi, the company is dedicated to reducing the cost of solar electricity to grid parity through increasing economies of scale, improving efficient utilization of raw materials such as silicon, and developing more advanced technology and new applications. While no solar company has achieved grid parity, Suntech is leading the way. The company is also developing a new thin film technology with 50% efficiency.

Solarfun power (SOLF) has been beating Street consensus estimates for three continous quarters now, and this time is no exception. Based on the events and news releases of the last few months, this company likely easily beats the Street by huge margin, and continues to see its stock price soar higher.

There are a few things investors need to pay attention to. Tuesday Morgan Stanley (MS) took an offer from solarfun in the form of an at-the-market equity offering. Investors welcomed this event with a stock price 7% move up Wednesday. Keep in mind, back in June 2008, Morgan Stanley bought 8M shares of Solarfun at the price of $20 after the market close. The I-bank apparently has full confidence in this company.

In this turmoil-filled market, takeover rumors are everywhere. But in the financial sector, takeovers are happening now. In the next few weeks, we will likely see consolidation on Wall Street.

With housing bottoming out, some banks look really cheap. The most imminent takeover is likely to be WaMu (WM). It has been on the agenda for some time now. Back in April WaMu refused an offer from JPMorgan (JPM). Recently the New York Post reported WaMu is on the top of the list that JPMorgan or another firm, such as Goldman Sachs (GS), is looking to acquire. Based on their sources, JPMorgan is talking to WaMu and other regional banks.

Many things happening now are boosting the outlook for solar stocks in the energy industry. High oil pricing due to strong demand worldwide also places solar as the front-runner among renewable energies. US presidential candidates Barack Obama and John Mccain's strongly support solar and wind energy, making this sector very attractive for investment no matter who wins. There are two companies in this sector investors should expect strong earnings from for this quarter: First Solar (FSLR) and Solarfun Power Holdings (SOLF). 

First Solar is the leader in this sector. The company reported 1st quarter 2008 earnings of $.57 per share on 4/30/08. This beat the consensus of $0.482 by $0.088 (there were 24 analysts covering this company). The consensus of the 28 analysts covering FSLR for the 2nd quarter 2008 is a per share value of $.58 (source: Etrade). Investors should expect the company to beat estimates by at least $0.10 on July 28. This will send its shares over $300 with little difficulty. Going forward into 2009, analysts predict continous growth of revenue. However investors should keep in mind FSLR is a relative expensive stock. 

When it comes to wind power, you cannot ignore American Superconductor (AMSC). The company provides an array of solutions based on two proprietary technologies: programmable power electronic converters and high temperature superconductor [HTS] wires. The company's AMSC Power Systems segment produces products to increase electrical grid capacity and reliability and supplies electrical systems used in wind turbines. The company sells must-have products in the wind power industry. This makes the company a unique player in the sector. The company stands out as a winner in several aspects compared to other players, such as Otter Tail (OTTR), Kaydon (KDN) and Trinity Industry (TRN). 

Investors like its worldwide reach. AMSC has a strong reseach and sales teams in China, a big wind power market. The company  recently received a $450M follow-on order from Sinovel Wind. Keep in mind that this is a follow-on order and, in my opinion, there are more to come. According to the Global Wind Energy Council’s Global Wind 2007 Report, China’s installed base of wind power capacity grew more than 130 percent in 2007, to approximately 6.1 gigawatts [GW].