Aug. 25, 2015, 12:34 PM
- The Nasdaq is up 3.4% - a Chinese rate cut is helping - and solar stocks are among the day's standouts. The Guggenheim Solar ETF (TAN +7.4%) is now up 14% from a Monday morning low of $25.51, albeit still down 13% from where it traded going into last week.
- Today's gains come after Pres. Obama announced several new incentives meant to boost solar investment. Among them: $1B in additional loan guarantee authority for distributed energy projects, the unlocking of Property-Assessed Clean Energy (PACE) financing for solar installations involving single-family homes, and the creation of a HUD/DOE program to give homeowners "a simple way to measure and improve the energy efficiency of their homes, by increasing homeowners' borrowing power."
- The announcement follows the White House's early-August unveiling of its Clean Power Plan, which aims to cut carbon emissions by 32% by 2030, relative to 2005 levels. Solar still only accounts for less than 1% of U.S. electricity output; renewable sources collectively account for 13%, with hydro responsible for half of the total and wind about a third.
- It also follows the launch of Google's Project Sunroof, which (with the help of satellite imagery) provides would-be home solar installers with advise on installation size and financing options, among other things.
- Major gainers include First Solar (FSLR +8.4%), JinkoSolar (JKS +27.1%), Trina (TSL +17.2%), Canadian Solar (CSIQ +13.2%), SunPower (SPWR +6.6%), JA Solar (JASO +10.6%), China Sunergy (CSUN +12.3%), Yingli (YGE +7.3%), SolarEdge (SEDG +6.9%), and Daqo (DQ +5.9%).
- Cowen has launched coverage on Canadian Solar with an Outperform rating and $28.50 target. Meanwhile, First Solar thin-film module rival TSMC announced today it's shuttering its solar manufacturing ops, while citing a lack of scale/competitiveness.
Aug. 11, 2015, 12:27 PM
- In its latest move to boost slowing economic growth, the PBOC has devalued the yuan, while insisting it's a one-time move. The yuan/dollar ratio is currently at 6.33, down from 6.21 yesterday.
- A number of Chinese Internet stocks that record the lion's share of their revenue in yuan are seeing their U.S. shares (denominated in dollars, of course) underperform (CQQQ -3.4%) amid a 1.3% drop for the Nasdaq. Major decliners include Baidu (BIDU -3.8%), Qunar (QUNR -10.2%), Ctrip (CTRP -5.9%), JD.com (JD -5.8%), Sina (SINA -5%), NetEase (NTES -3.9%), Jumei (JMEI -10.7%), Youku (YOKU -6.2%), Bitauto (BITA -6.4%), Leju (LEJU -6%), Changyou (CYOU -7.7%), and Autohome (ATHM -5.3%).
- Among Chinese solar names, Daqo (DQ -14.4%) and JinkoSolar (JKS -3.3%) are seeing big losses.
- JD.com is adding to the Monday losses seen following a Morgan Stanley downgrade and news Alibaba has formed an alliance with major electronics retailer Suning. Both JD and Jumei could be affected by fellow online retailer Vipshop (down 11.1%), which yesterday afternoon provided light Q3 sales guidance to go with a Q2 EPS beat.
- ETFs: KWEB, QQQC, EMQQ
- Yesterday: Chinese Internet stocks rally after Shanghai/Shenzhen post big gains
Aug. 11, 2015, 5:23 AM
- DAQO New Energy (NYSE:DQ): Q2 EPS of -$0.09 beats by $0.05.
- Revenue of $34.33M (-21.5% Y/Y) misses by $0.62M.
Jul. 16, 2015, 8:33 AM
Jul. 9, 2015, 1:28 PM
- Down sharply yesterday, solar stocks (TAN +5.3%) are among today's standouts after Chinese regulators announced a fresh round of aggressive measures aimed at halting a local market crash. Among them: Investors holding 5%+ stakes aren't allowed to sell shares for six months.
- Like their Web/mobile peers, Chinese solar names are surging: Big gainers include Yingli (YGE +5.3%), Daqo (DQ +7.1%), Trina (TSL +5.6%), JA Solar (JASO +10.1%), China Sunergy (CSUN +12.4%), JinkoSolar (JKS +5.2%), Sky Solar (SKYS +10.7%), and ReneSola (SOL +4.8%).
- Major non-Chinese gainers include Canadian Solar (CSIQ +4.1%), Solar3D (SLTD +11.3%), SolarEdge (SEDG +4.4%), and Vivint (VSLR +7.1%).
- Some news: 1) The U.S. DOC has decided to maintain anti-dumping tariffs on Chinese module imports, while slightly modifying its rates. Yingli says it will now have a 21.7% combined rate, down from a 2012 level of 29.2% and the lowest among peers. 2) SolarEdge has struck a deal with #2 U.S. residential solar installer SunRun (RUN - about to go public) to be SunRun's "preferred supplier of optimized inverter solutions." SolarEdge also sells to SolarCity and Vivint. 3) Sky Solar has obtained an $85M loan to finance a Uruguay solar project.
- Update (1:50PM ET): Yingli is now down 4.9%, thanks to a report stating the company has halted production after talks with creditors broke down.
Jul. 8, 2015, 2:46 PM
- Solar stocks are seeing big losses once more today. The Nasdaq is down 1.7%, the S&P is down 1.5%, and worries about the economic effects of a Chinese stock market crash are easy to find. Those less concerned make note of China's high savings rate, and the relatively low portion of Chinese household assets invested in equities.
- The Guggenheim Solar ETF (NYSEARCA:TAN) is now down 32% from its April peak, and roughly flat on the year.
- Chinese firms Trina (TSL -5.7%), JinkoSolar (JKS -8.9%), Yingli (YGE -4.9%), ReneSola (SOL -6%) China Sunergy (CSUN -5.1%), and Daqo (DQ -4.2%) are adding to yesterday's losses.
- Major non-Chinese decliners include Canadian Solar (CSIQ -7%), SolarEdge (SEDG -9.9%), Vivint (VSLR -4.4%), and Solar3D (SLTD -8.3%). Enphase is off sharply following a JPMorgan downgrade. SolarEdge and Solar3D are now respectively down 23% and 18% on the week.
Jul. 7, 2015, 1:32 PM
- While most major North American solar names are down moderately or trading higher, Chinese firms are seeing heavy losses as a domestic rout in equities continues. Many Chinese Web and mobile stocks are seeing similar drops; margin calls and general panic selling appear to be contributing.
- Major decliners include Trina (TSL -9.1%), Yingli (YGE -10.2%), Daqo (DQ -14.6%), China Sunergy (CSUN -13.8%), JA Solar (JASO -7.7%), JinkoSolar (JKS -7%), and ReneSola (SOL -6.6%).
- Solar ETFs have felt the impact. TAN -2.7%. KWT -4%.
- Yesterday: Solar stocks off sharply after oil plunge, Greek "no" vote, Chinese tech selloff
Jul. 6, 2015, 12:41 PM
- While the demand link continues to be argued, the stock price link remains real: WTI crude is down 5% to $54.10/barrel, and many solar stocks are posting outsized losses on a day the Nasdaq is off 0.4%. The Guggenheim Solar ETF (TAN -4.9%) is at its lowest levels since February.
- The selloff comes after Greek voters soundly rejected austerity measures demanded by creditors. It also coincides with major losses for Chinese tech stocks, many of which have already been clobbered over the last month.
- Chinese solar plays JinkoSolar (JKS -5.8%), Daqo (DQ -6.1%), Yingli (YGE -6.5%), and JA Solar (JASO -7.4%) are down sharply. Also seeing large declines: Canadian Solar (CSIQ -4.3%), Sky Solar (SKYS -11.2%), SolarEdge (SEDG -5.9%), Solar3D (SLTD -7.7%), Vivint (VSLR -8%), and Enphase (ENPH -4.2%).
- Last Wednesday: Solar stocks drop as oil falls; Deutsche defends
- Update: Also of interest: Canada's International Trade Tribunal has joined U.S. and EU regulators in placing anti-dumping tariffs on Chinese solar module exports. However, the move was expected, and Canada accounts for a small % of global solar demand. CSIQ has responded to the decision by noting "most of our modules supplied to Canada markets are produced locally."
Jun. 30, 2015, 7:57 AM
- Daqo ;New Energy (NYSE:DQ) appoints Ming Yang as its new CFO, while acting CFO Shihua Su is named chief marketing officer.
- Yang was a management consultant at McKinsey, where he specialized in the clean tech and solar sectors.
- Separately, DQ says it has started pilot production of the newly added 6K metric ton polysilicon capacity at its Xinjiang site.
Jun. 10, 2015, 2:38 PM
- The Nasdaq is up 1.4% and the S&P 1.3%, and Chinese and Internet solar names aren't missing out on the fun. The Guggenheim China Tech ETF (CQQQ +0.9%) is up 20% YTD, as is the Guggenheim Solar ETF (TAN +2.2%).
- The gains come even though the Shanghai exchange fell fractionally overnight, following news MSCI is delaying (but not abandoning) plans to include Chinese A-shares in its global benchmark index. The more volatile (some argue frothier) Shenzhen index rose 2%.
- Major Internet gainers include ChinaCache (CCIH +20.2%), YY (YY +5.1%), NQ Mobile (NQ +6.3%), Bitauto (BITA +4.4%), Autohome (ATHM +6.1%), Sky-mobi (MOBI +6.4%), 51job (JOBS +10.9%), Xunlei (XNET +11.3%), Leju (LEJU +6.4%),and KongZhong (KONG +6.8%). Earlier today, Renren and 21Vianet joined the ranks of Chinese tech firms to announce they've received going-private offers, and LightInTheBox disclosed a major investment from shoe retailer Aokang.
- Solar gainers include Trina (TSL +3.7%), JinkoSolar (JKS +3.2%), ReneSola (SOL +3.8%), Daqo (DQ +3.3%), and China-exposed Canadian Solar (CSIQ +3.8%). U.S. peers First Solar and SunPower are also doing well after setting IPO pricing for their solar project YieldCo.
- Last Friday: Chinese Internet stocks surge as Shanghai tops 5K
Jun. 5, 2015, 1:26 PM
- Solar stocks are doing well (TAN +1.1%) on a quiet morning for equities after JA Solar disclosed a going-private offer from its CEO, and beaten-down Yingli provided mixed Q1 results (revenue beat, EPS missed) and better-than-feared guidance.
- Aside from JA/Yingli, gainers include First Solar (FSLR +3.4%), Canadian Solar (CSIQ +3.6%), JinkoSolar (JKS +4.1%), ReneSola (SOL +10.8%), China Sunergy (CSUN +5.4%), Trina (TSL +3%), Sky Solar (SKYS +2.9%), and Daqo (DQ +4.2%).
- Chinese solar names might also be benefiting from an overnight rally in Shanghai (see Chinese Internet stocks). First Solar, meanwhile, has seen a (questionable) rumor about a Wal-Mart buyout offer surface.
May 12, 2015, 3:12 PM
- Today's notable tech gainers include insurance software/data exchange provider Ebix (EBIX +5%), Chinese polysilicon maker Daqo (DQ +6.9%), networking SRAM maker MoSys (MOSY +7.7%), enterprise mobility management software firm MobileIron (MOBL +6.3%), U.S. solar installer Solar3D (SLTD +4.3%), and Korean analog/mixed-signal chipmaker MagnaChip (MX +5.3%).
- Notable decliners include Chinese online retailers JD.com (JD -4.4%) and Vipshop (VIPS -5%), Chinese Internet mini-conglomerate Qihoo (QIHU -4.6%), and cloud online learning software provider 2U (TWOU -5.6%). The Nasdaq is down 0.2%.
- Daqo is now up 11% since last Friday's mixed Q1 report. Ebix is up 18% since delivering a Q1 beat last Friday. MobileIron's gains come after the company named well-traveled tech vet Simon Biddiscombe its interim CFO. Solar3D is rallying after issuing a PR that sings the praises a of an upbeat Bernstein report on solar cost declines.
- Qihoo and JD are more than reversing the Monday gains seen amid a Chinese Internet stock rally. 2U has now fully given back the gains seen last week following its Q1 beat.
- Previously covered: Rackspace, Everyday Health, magicJack, WidePoint, LivePerson, YY, STMicroelectronics, ChipMOS, iDreamSky, Leidos, Photronics
May 11, 2015, 3:02 PM
- Canadian Solar (CSIQ +5.3%) and SolarEdge (SEDG +11.3%) are adding to their big Friday gains on a quiet day for tech. ReneSola (SOL +10%), Daqo (DQ +4.9%), Enphase (ENPH +2.8%), and JinkoSolar (JKS +2.2%) are also doing well. An overnight rally in Shanghai (followed a fresh PBOC rate cut) could be helping the Chinese names.
- Canadian is up 14% since Thursday morning's Q1 report (I, II). SolarEdge is up 32% since delivering very strong results/guidance on Thursday afternoon, making new post-IPO highs along the way. Daqo is more than erasing the Friday losses seen following the company's mixed Q1 results.
- A bullish SA PRO column on SolarEdge from Casual Analyst came out of embargo over the weekend. Among other things, the author argues SolarEdge's power optimizer/inverter-based systems are superior to Enphase's microinverter-based systems on a cost basis (though Enphase has an edge in simplicity), that SolarEdge's architecture has lower maintenance costs, and that the architecture is well-suited for integrating module-level power electronics.
May 8, 2015, 5:40 AM
- DAQO New Energy (NYSE:DQ): Q1 EPS of $0.12 beats by $0.07.
- Revenue of $41.87M (-0.5% Y/Y) misses by $2.13M.
May 1, 2015, 7:04 AM
Apr. 20, 2015, 12:48 PM
- China connected 5.04GW of solar capacity (nearly equal to France's) in Q1, the National Energy Administration reports. The figure brings China's cumulative installations to 33GW, and suggests the country is on its way to hitting a full-year target of 17.8GW.
- Utility-scale projects accounted for 4.38GW of the installations, and 1.1GW of capacity was installed in northwestern Xinjiang province. The fact China isn't setting specific 2015 targets for utility and distributed installations (not the case in 2014) has widely been expected to make the full-year target easier to hit.
- Chinese solar firms are delivering a mixed performance following the announcement. ReneSola (SOL +5.6%), JinkoSolar (JKS +2.9%), and Trina (TSL +2.4%) are outperforming (the Nasdaq is up 1.2%), Canadian Solar (CSIQ +1.2% - has healthy Chinese exposure) and JA Solar (JASO +1%) are up moderately, and Yingli (YGE -1.5%) and Daqo (DQ -5.2%) are lower.
- Yingli announced this morning it's developing a 50MW solar plant in China's Hebei province, and has received RMB300M ($48M) in financing for it. Construction and grid interconnection is expected to be finished by the end of May.
- A week ago: Chinese solars up strongly after Shanghai rallies, RBC makes bull case
Daqo New Energy Corp. is engaged in the manufacture and sale of polysilicon and silicon wafer. Its products include polysilicon, silicon wafers, and solar modules. The company was founded on November 22, 2007 and is headquartered in Wanzhou, China.
Sector: Industrial Goods
Industry: Industrial Equipment & Components