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Solar stocks rebound; Deutsche calls Chinese fears overblown

  • A day after solar stocks sold off amid concerns about a possible 4GW cap on 2014 Chinese utility-scale solar installations, shares are bouncing with the help of a Deutsche note that calls such fears overblown, and states checks indicate the Chinese government has become "even more serious" about achieving its 35GW 2015 cumulative installation target.
  • In spite of utility cap worries, Deutsche's checks suggest "the policy outlook for large [solar] projects in China has improved since mid-November," with approval times having been cut. Moreover, provinces haven't shown any sign of being issued targets or quotas related to an installation cap.
  • The firm also thinks a new Chinese solar subsidy program (focused on self-consumption) that kicks in next month will offset the expiration of China's Golden Sun subsidy program, and that a more streamlined incentive process will fuel installation growth.
  • Deutsche is reiterating Buys on Yingli (YGE +4.3%) and Trina (TSL +5.9%). Also up: FSLR +2.6%. HSOL +9.7%. CSIQ +5.9%. JKS +6.1%. SOL +3.7%.
  • Solar ETFs: KWT, TAN
Comments (5)
  • iloewy
    , contributor
    Comments (53) | Send Message
     
    This company JKS is the lowest cost producer of solar electricity and the share price will be much higher in the future .Navellier has a very high opinion of the company and rates it "A" ,but it is volatile as we saw in the last few days.
    10 Dec 2013, 12:58 PM Reply Like
  • moreofthesame
    , contributor
    Comments (743) | Send Message
     
    If you consider the interest that JKS has to pay on its debt compared to TSL, its low cost production doesn't look that great anymore. I agree JKS is very well positioned but it won't go much above 35 as long as it has that debt. I bought JKS at 2.6 and sold at 34, believe me I love them but I do think that it will need something stronger at this point than a good earnings report.
    10 Dec 2013, 01:16 PM Reply Like
  • asd
    , contributor
    Comments (23) | Send Message
     
    " I bought JKS at 2.6 and sold at 34"

     

    Sure.. haha. Lying gipsy
    12 Dec 2013, 11:06 AM Reply Like
  • moreofthesame
    , contributor
    Comments (743) | Send Message
     
    asd, you are out of line. behave yourself and learn to curb your jealousy. If you are a man and willing to bet against what I said then lets do it. How about 10000$ in an escrow account, I will then produce my trading records and prove my point and add to my earnings with your money as well. You in ?
    14 Dec 2013, 01:15 PM Reply Like
  • John Schiro
    , contributor
    Comments (36) | Send Message
     
    Trina solar is the best pure play Chinese solar stock by a mile followed by Yingli. Trina's been exhibiting outstanding financial discipline for years and as a result is one of the few remaining companies still solvent in China. The leader in china's solar industry Suntech and LDK took on too much debt and were recently delisted. My guess is Trina is a ten bagger over the next few years.
    11 Dec 2013, 01:02 AM Reply Like
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