Seeking Alpha

Solar stocks rally again; Chinese government steps up support

  • Solar stocks started 2014 with a bang, and are adding to their momentum today (TAN +4%) with the help of positive industry and company-specific news.
  • The Chinese government, which last year set a 35GW 2015 cumulative installation target, is now promising additional support, and says it will draft guidelines for industry M&A. Consolidation with China's fragmented solar cell/module market could both lower overcapacity (already declining thanks to rising demand) and lead to further margin expansion.
  • Yingli (YGE +8.7%) and Canadian Solar (CSIQ +7.4%), both of which saw huge 2013 gains, are today's biggest gainers. Yingli has announced it's forming a JV with state-owned China National Nuclear Corp. to create 500MW of utility-scale solar projects. Canadian has announced a deal to supply 25.3MW of modules for four North Carolina projects.
  • Also: Hanwha (HSOL +4.6%) has signed an MOU to supply up to 50MW of modules to U.S. residential solar installer OneRoof Energy.
  • Other gainers: FSLR +2.7% (hit by a Goldman downgrade yesterday). SUNE +4.4%. DQ +4.9%. CSUN +3.2%. JASO +5.5%. ENPH +6.8%. ASTI +3.8%. JKS +3%.
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Comments (5)
  • hneumann
    , contributor
    Comments (632) | Send Message
     
    TSL +3%
    7 Jan 2014, 01:20 PM Reply Like
  • benitus
    , contributor
    Comments (2110) | Send Message
     
    GS analysts have lost their minds. Downgrading FSLR when everyone else is flying off the shelves. Once those who ran away yesterday realized that they've been duped by GS, they will flock back again tomorrow boosting it as much as $3 (maybe more) because it should be above $55 if not more.
    7 Jan 2014, 06:12 PM Reply Like
  • rogerenroute
    , contributor
    Comments (168) | Send Message
     
    I have worked in renewable emergy for 20 years. I don't trust GS to do analysis in this field when they have business partnerships with a competitor they upgraded the same day they downgraded FSLR. I bought FSLR yesterday at the bottom, sold it early morning today at 53.47 and bought it back in the afternoon today when it dropped.
    7 Jan 2014, 09:07 PM Reply Like
  • benitus
    , contributor
    Comments (2110) | Send Message
     
    Good for you, roger....You're my kind of guy, doing exactly what I do everyday and making money from stupid calls by idiotic analysts, who're pimping for their clients.
    8 Jan 2014, 07:53 AM Reply Like
  • Ulysses Benjamin Dover
    , contributor
    Comments (157) | Send Message
     
    me likes SUNE a much lots
    7 Jan 2014, 11:15 PM Reply Like
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