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Market Vectors Solar Energy ETF (KWT)

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  • Jun. 6, 2012, 12:16 PM
    As investors pile into risk assets, First Solar (FSLR +7.7%) is leading a rally in solar stocks (TAN +3.4%). Shares had fallen 89% over the prior 12 months as of yesterday's close. The rally comes even as the head of a French trade association warns solar vendors hold a year's worth of inventory, raising the prospect of widespread bankruptcies and consolidation. He adds panel demand might grow 18% in 2012 to 32GW, growth that will be more than offset by price declines. (previous)
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  • Jun. 1, 2012, 2:20 PM
    More bad news for Chinese solar firms who have just been hit with major U.S. tariffs. European banks, many of whom have troubles of their own, have reportedly started blacklisting Asian solar module vendors seeking funds from lending facilities, as have systems integrators. Weak Euro solar demand, macro troubles, and concerns about product quality are all said to be influencing the moves.
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  • May 29, 2012, 12:26 PM
    If major Chinese solar vendors, who now have to contend with U.S. tariffs in addition to the industry's pricing and oversupply woes, continue to struggle, the Chinese government is "likely to adjust the entire supply chain," Digitimes reports. That might not go over well with governments upset over Chinese subsidies for solar vendors, but would back up reports the government favors industry consolidation. LDK Solar (LDK -12.5%), the one firm specifically named in the report, is off sharply.
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  • May 28, 2012, 3:32 PM
    Yingli Green Energy (YGE) is expected to post a $32.8M Q1 net loss on Wednesday, but is hardly the only solar company hurting as Europe cuts solar subsidies and the U.S. slaps tariffs on Chinese solar products. Says one analyst: "No one is expecting solars to make money this year, so the question is which company will make it through the next year or two. There has to be consolidation."
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  • May 24, 2012, 8:21 AM
    Suntech (STP) CEO Zhengrong Shi says if Europe follows the U.S. in levying punitive tariffs on Chinese solar panel imports, it could deal a "lethal" blow to the industry. Beyond words, China signals it may retaliate against the tariffs, saying U.S. government backing for six clean energy projects in China had violated WTO rules and acted as barriers to trade.
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  • May 18, 2012, 10:52 AM
    A day after American and Chinese solar stocks went in opposite directions thanks to the U.S. government's imposition of anti-dumping duties on Chinese solar imports, the entire group is trading lower (TAN -2.1%), perhaps due to investors focusing on the huge oversupply and pricing issues facing industry players regardless of location. Among the big losers: FSLR -3.5%. STP -3.8%. SPWR -5.2%. YGE -6.4%.
  • May 4, 2012, 5:56 PM
    First Solar (FSLR -6.3%, previous) isn't the only solar industry player idling capacity. Digitimes reports 90% of Chinese polysilicon vendors have suspended operations, and "a large fraction" of local solar firms shut down production in Q1 in the face of utilization rates that were often below 50%. This sure looks like the shakeout many have been predicting. Is it just in its early stages, or is a bottom being created?
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  • May 1, 2012, 10:41 AM
    More on Citi's upgrade of SunPower (SPWR +11.4%) and Yingli (YGE +9.3%): Analyst Timothy Arcuri says checks indicate sell-through for solar panels "has increased significantly in the past 1-2 weeks," particularly in struggling Europe, and utilization rates have also risen. He sees this as a sign of a "cyclical bottom in margins," and predicts demand will exceed supply later this year. In late August, Arcuri smartly called a bottom for the chip equipment industry. (also)
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  • Apr. 30, 2012, 3:54 PM
    In proof of how low solar industry expectations have become, LDK Solar (LDK +9.8%) is now up sharply after delivering a brutal Q4 report (I, II) and even worse Q1 guidance. Likely helping is LDK's disclosure it has cut 22% of its staff this year. In addition, LDK's guidance for 2012 revenue of $2B-$2.7B is largely above a $2.04B consensus, though many are doubtlessly skeptical it can hit that range.
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  • Apr. 25, 2012, 10:37 AM
    Q2 solar demand has been better than expected, Digitimes reports, with Taiwanese cell vendors reporting stable pricing and a pickup in orders from European customers. However, much of the Euro demand stems from installations being made ahead of Italian subsidy cuts, and pricing has stabilized partly because the losses being posted by solar firms leave little room for additional cuts.
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  • Apr. 17, 2012, 12:31 PM
    MEMC Electronics Materials (WFR +10.9%) rides the coattails of sector rival First Solar higher after FSLR decides to dramatically restructure itself. The company - which makes polysilicon wafers and builds solar plants - has outperformed the Market Vectors Solar ETF (KWT) by nearly a full percentage point YTD amid the solar stock shakeout.
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  • Apr. 16, 2012, 12:47 PM
    Canadian Solar (CSIQ +7.2%) has given back a chunk of the premarket gains it saw on a report CNOOC (CEO) is in talks to acquire the firm. Other Chinese solar names have given back most or all of their early gains: TSL -2.1%. YGE -2.9%. JASO +1.5%. HOKU +0.9%. Past remarks from the Chinese government have already led many to expect consolidation, and some fear a bit of M&A activity won't be enough to fix the solar industry's huge problems.
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  • Apr. 11, 2012, 1:57 PM
    Possibly contributing to today's rally in solar stocks (KWT +4.8%) is news of a draft decree from the Italian government that seeks to merely cap solar subsidy increases at €500M/year. This subsidy "cut" is milder than many feared, particularly after the German government announced major solar feed-in tariff reductions.
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  • Apr. 11, 2012, 10:11 AM
    Solar stocks (KWT +4.3%) rally on frenzied momentum buying with Trina Solar (TSL +6.1%), Suntech Power (STP +9.1%), and First Solar (FSLR +9.6%) leading the charge after reports tip off that DoE funds appear to be flowing into the sector. Was SA author Shareholders Unite correct in calling out a multi-year bottom yesterday with its belief that demand is set to improve?
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  • Apr. 9, 2012, 1:04 PM
    A silver lining to the solar crisis is that the fall in panel prices should enable the sector to compete without government subsidies, writes Liam Denning in the WSJ. However, it won't necessarily be the pioneers that benefit, but companies such as GE with the "scale to compete on price and absorb the inevitable cyclical losses."
  • Apr. 4, 2012, 10:58 AM
    The world's largest solar power project, the 1,000-megawatt Blythe Solar Power Project in southern California, could be in jeopardy after Solar Trust of America filed for bankruptcy protection. Solar Trust holds the development rights for the project, which has a $2.1B government loan guarantee.
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KWT Description
Market Vectors Solar Energy ETF (the “Fund”) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Global Solar Energy Index (the “Index”).
See more details on sponsor's website
Sector: Technology
Country: United States
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