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Market Vectors Solar Energy ETF (KWT)

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  • Nov. 18, 2014, 11:36 AM
    • Under pressure for much of last week, solar stocks are rallying (TAN +4.3%) after SunEdison (SUNE +23.5%) and its TerraForm Power (TERP +29.1%) YieldCo announced they're buying leading wind project developer First Wind for up to $2.4B, and JA Solar (JASO +4%) beat Q3 estimates and upped its full-year cell/module shipment guidance to 3.1GW-3.2GW from 2.9GW-3.1GW.
    • Gainers: SCTY +3.9%. SOL +4.5%. TSL +3.7%. YGE +2.7%. JKS +3.4%. HSOL +2.8%. ASTI +6%. DQ +3.2%. RGSE +2.6%.
    • SunEdison CEO Ahmad Chatila declares the First Wind deal will double his company's addressable market. Cowen thinks SunEdison "can leverage First Wind’s platform to push into international markets for wind given the potential expiration of the production tax credit for U.S. wind projects."
    • Along with its results/guidance, JA announced a $90M buyback; it's good for repurchasing 23% of shares at current levels, if fully used. JA's Q3 gross margin was 15%, -20 bps Q/Q but +370 bps Y/Y. Cell/module shipments rose 15.2% Q/Q and 57% Y/Y to 500.2MW.
    | 1 Comment
  • Nov. 13, 2014, 1:58 PM
    • Solar stocks can't catch a break this week. Down on Tuesday following Vivnt Solar's weak results and guidance, and down yesterday in the wake of Canadian Solar's numbers, they're off today after SunPower provided light 2015 guidance.
    • Notable decliners: FSLR -4.3%. SUNE -5%. CSIQ -6.9%. JKS -5%. SOL -4.7%. JASO -3.2%. VSLR -3.7%. SOL -4.7%. CSUN -7.9%.
    • Chinese polysilicon maker Daqo (DQ -10.1%), which posted mixed Q3 results this morning, is selling off after opening higher.
    • Is a lot of bad news priced in? The Guggenheim Solar ETF (TAN -1.6%) is now down 33% from a March high of $51.07, and not far from a 52-week low of $32.23.
    | 17 Comments
  • Nov. 11, 2014, 12:15 PM
    • Newly-public Vivint Solar (VSLR -21.6%) has nosedived after missing Q3 EPS estimates and guiding for Q4 revenue of $5.5M-$6.5M, below a $7.3M consensus. Installations are expected to fall to 45MW-47MW from Q3's 49MW.
    • Rivals SolarCity (SCTY -3%) and SunPower (SPWR -3.2%) are following Vivint lower, as are several other solar names. RGSE -6.2%. ENPH -5.7%. CSIQ -2.5%. JKS -2.2%. DQ -4.1%. CSUN -2.7%.
    • Solar ETFs: KWT, TAN
    | 14 Comments
  • Oct. 13, 2014, 4:09 PM
    • Solar and fuel cell companies are among the biggest decliners on a day that saw NYMEX crude oil prices fall below $85/barrel (they're now slightly above), and Reuters report the Saudi government "will accept oil prices below $90 per barrel, and perhaps down to $80, for as long as a year or two." The Nasdaq as a whole finished down 1.4%.
    • Of note: Oil only accounts for 1% of U.S. electricity production, and also a small percentage of electricity output in many other large economies.
    • Solar decliners: SUNE -10.7%. FSLR -5.9%. SCTY -9.7%. DQ -9.4%. CSIQ -8.1%.JASO -7.7%. SOL -8.6%. TERP -7.5%. JKS -6.7%. CSUN -5.9%. VSLR -6.3%. TSL -8.7%. YGE -5%.
    • Fuel cell decliners: FCEL -6%. PLUG -4.7%. BLDP -7.4%.
    • Solar ETFs: KWT, TAN
    | 24 Comments
  • Sep. 12, 2014, 2:14 PM
    • Solar stocks are on the move after Trina Solar (TSL +3.7%) CEO Gao Jifan says its factories are operating at full capacity but the company still can't meet the demand for its solar panels.
    • China's top three solar panel makers are at full capacity and will have to expand their production, Gao says, noting that TSL's solar panel production will rise to 3.8 GW by year-end, up from ~3.4 GW at the end of June.
    • China recently announced new subsidies for smaller solar energy projects, which Goldman Sachs says will make selling power to the country's electrical grid much more lucrative for the operators and will cause prices of solar components to rise.
    • CSIQ +2.6%, CSUN +7.4%, YGE +3%, FSLR +1.7%, SPWR +0.8%, JASO +2.4%, SOL +5.4%.
    • ETFs: TAN, KWT
    | 2 Comments
  • Sep. 4, 2014, 1:51 PM
    • Making good on an August Bloomberg report, China's National Energy Administration (NEA) has called on local governments to identify and support distributed solar projects in their realms.
    • As previously reported, extra subsidies will be encouraged for rural and government projects, public infrastructure installations will be promoted, and financial firms have been told to offer discounted loans.
    • The NEA is trying to hit an 8GW 2014 distributed solar installation target in spite of a slow start to the year. Its target for utility-scale projects stands at 6GW.
    • Several Chinese solar stocks are rallying, as are a few non-Chinese names. YGE +5.1%. CSIQ +3.6%. JASO +3.8%. TSL +2.3%. SOL +2.1%. HSOL +5.2%. DQ +4.7%. ENPH +6.6%. ASTI +6.1%. RGSE +2.8%. SolarCity (SCTY +5.1%) is up after announcing plans to open 20 new operations centers.
    • Solar ETFs: KWT, TAN
    | 2 Comments
  • Aug. 19, 2014, 10:20 AM
    • "Based on our checks, we estimate the probability of [trade settlement] success is now ~30-40% vs. prior expectations of 5-10%," writes Roth. "The narrative for Chinese solar stocks, in our view, has shifted to a more positive tone."
    • Roth's remarks follow a letter from a law firm representing the Chinese government to the U.S. Commerce Department proposing talks for a solar tariff suspension agreement. Last week, Beijing retaliated against U.S. solar module tariffs by closing a loophole for U.S. and Korean polysilicon imports.
    • Though admitting many Chinese suspension offers have been rejected over the years, Roth thinks "the Chinese government would not have made an offer without believing it would have a decent probability of success as it does not want to be rejected by the US government publicly."
    • Notable gainers: YGE +3.9%. TSL +3.9%. JASO +3.3%. SOL +3.9% CSUN +6%. HSOL +4.3%.
    • Solar ETFs: TAN, KWT
    | 2 Comments
  • Aug. 5, 2014, 11:57 AM
    • Bloomberg reports China's National Energy Administration (NEA) might soon announce policies calling on local planners to support more distributed solar projects - specifically, projects in industrial zones, and for companies with buildings sporting large rooftops.
    • Among others things, local governments will be encouraged to offer more distributed solar subsidies, and to promote installations on public infrastructure. Financial firms will be urged to offer discounted loans, and to create solar investment funds.
    • China is aiming for 8GW of 2014 distributed solar installations (to go with 6GW of utility-scale installations), but there have been doubts the target will be hit following a slow start to the year. Deutsche argued in May 2GW could be a more realistic distributed target.
    • Chinese solar names are up strongly. U.S. giant First Solar reports after the bell. TSL +8.4%. CSUN +7.6%. JKS +8.3%. SOL +6.7%. CSIQ +6.3%. JASO +5.7%. HSOL +4.8%. YGE +4.8%. DQ +4.1%. YGE +4.8%.
    • Solar ETFs: TAN, KWT
    | 3 Comments
  • Aug. 1, 2014, 12:26 PM
    • Solar stocks are underperforming (TAN -4%) amid a market selloff after SunPower (SPWR -8.5%) posted mixed Q2 results and provided Q3/2014 guidance ranges with midpoints below consensus.
    • SunPower also announced it's building a new plant (Fab 5) that could go live in 2017 and eventually produce 700MW+/year of modules, boosting its capacity by over 50%. "Our share has been in single digits for a while and demand for the last 24 months suggests that we can expand share," says CEO Tom Werner.
    • The announcement comes 6 weeks after SolarCity (SCTY -3.5%) unveiled plans to build a 1GW+ module plant with newly-acquired Silevo's help, and said it will later build "one or more significantly larger plants at an order of magnitude greater annual production capacity."
    • Minimal capacity investments, together with rising U.S./Asian demand, have helped module prices stabilize following gut-wrenching declines in prior years.
    • Also: SunPower stated on its CC (transcript) it hasn't decided whether to create a solar project YieldCo similar to SunEdison's (SUNE -4.3%) TerraForm Power (TERP -4.7%), which recently turned in a strong IPO. "It does not look like the company is likely to make a decision anytime soon," says Raymond James.
    • Nonetheless, Brean has upgraded SunPower to Buy, citing optimism about strong demand and healthy pricing.
    • Other notable decliners: FSLR -3.6%. TSL -8.4%. JKS -6%. CSIQ -5.6%. CSUN -5.7%. YGE -5%. SOL -4.5%. ENPH -5.8%. RGSE -4.5%. HSOL -3.9%. JASO -4.4%.
    | 7 Comments
  • Jul. 28, 2014, 7:59 AM
    • Solar names are under pressure following the U.S. government's move to place anti-dumping duties as high as 165% percent on solar panels and cells from China.
    • China condemns the action, saying "if escalating problems in the China-U.S. solar industry are ignored, in the end it will damage up and downstream industries in both countries."
    • Moving sharply lower premarket: YGE -5.1%, CSIQ -4.3%, JKS -3.8%, TSL -2.7%, JASO -2.5%, SCTY -2.2%, HSOL -4.9%
    • Moving up: SPWR +1.8%, FSLR +2.7%.
    • ETFs: TAN, KWT
    | 6 Comments
  • Jul. 14, 2014, 1:38 PM
    • WTO judges have ruled the U.S. imposition of tariffs on Chinese solar modules, steel products, and other exports violates global trade rules.
    • Though rejecting some Chinese arguments against U.S. tariffs, the judges ultimately ruled the tariffs are inconsistent with obligations under the 1994 Marrakesh accord.
    • The U.S. originally imposed tariffs on Chinese solar module exports in 2012, and followed up last month by slapping new preliminary tariffs meant to close a loophole related to the use of non-Chinese cells.
    • Chinese solar stocks are rallying on an up day for equities: YGE +4.8%. SOL +3.1%. CSUN +5.5%. TSL +2.6%. JKS +2.8%.
    • SolarCity (SCTY +2.4%), which relies heavily on Chinese module imports (that might change in a few years), is also higher.
    • Solar ETFs: KWT, TAN.
    | 9 Comments
  • Jul. 8, 2014, 10:08 AM
    • OTR Global reports the Chinese government is thinking of cutting its 2014 solar installation targets due to credit availability issues.
    • The government previously set a 2014 installation target of 14GW (8GW distributed systems, 6GW utility). Deutsche has already expressed doubts about its feasibility following a soft Q1.
    • U.S. and Japanese shipments have been faring better, but new DoC tariffs could take a toll on near-term Chinese sales to the former market.
    • Solar stocks are lower amid a market selloff: YGE -5.3%. CSIQ -4.7%. SCTY -3.5%. FSLR -3.5%. SPWR -3.2%. JKS -4.6%. HSOL -4.4%. SOL -3.5%. DQ -3.4%. CSUN -5%. TSL -2.7%. ENPH -3%.
    • Solar ETFs: KWT, TAN
    • Update: OTR's note comes amid a report the Chinese government plans to hike its subsidies for power sales stemming from rooftop solar projects by up to 55%, putting their revenue (on a per-kWh basis) on par with ground-mounted projects.
    | 25 Comments
  • Jul. 7, 2014, 11:31 AM
    • Most index ETFs trail their benchmarks over time by about the amount of their expenses, but the Guggenheim Solar ETF (TAN) has beaten the MAC Global Solar Energy Index by a median 360 basis points each year over the past few.
    • How? Like a number of other funds, TAN lends some of its holdings to investors - often shorts - in exchange for a fee which can get quite large when shorting demand is high. Since the fund's 2008 inception, "TAN had a portfolio of stocks the Street desperately wanted to short," says ETF.com's Dave Nadig.
    • Other solar ETFs: KWT
    | 1 Comment
  • Jul. 2, 2014, 9:49 AM
    • Canaccord has launched coverage on SolarCity (SCTY +4.4%),  SunEdison (SUNE +1.2%), Canadian Solar (CSIQ +2.3%), and RGS Energy (RGSE +4.7%) with Buy ratings.
    • SunPower (SPWR +0.6%) is up slightly in spite of being started at Hold.
    • Canaccord's Josh Baribeau predicts the solar industry as a whole will benefit as "financial innovation such as risk pooling, securitization, de-levering etc. continue to drive the costs of capital and system costs downward."
    • Baribeau expects SolarCity ($94 PT, leading the securitization trend) to beat Street deployment estimates, and to see strong cash flow growth with the help of declining component and financing costs.
    • He likes Canadian's low manufacturing costs, industry-leading commercial backlog, and relatively low Chinese sales dependence. His target is $43, or 10x 2015E EPS.
    • Solar ETFs: KWT, TAN
    • Previous: Deutsche upbeat on solar YieldCo potential
    | 2 Comments
  • Jun. 17, 2014, 12:55 PM
    • SolarCity has announced plans to build a 1GW+ module plant in NY, and to follow it up with one or more much larger facilities. Notably, the company declares (in spite of a current capacity glut) it needs to build the plants to meet long-term solar demand.
    • Yingli missed Q1 estimates, but reported a healthy gross margin (thanks in part to strong Japanese sales) and reiterated full-year guidance.
    • Also: Goldman is out with a bullish note, predicting rooftop solar installations will post a 40% CAGR through 2016.
    • Gainers: FSLR +2.8%. SPWR +4.2%. SUNE +4.4%. JASO +8.2%. SOL +7.5%. JKS +6.5%. CSIQ +7.4%. DQ +4.2%. ASTI +3.9%. HSOL +6.9%. TSL +5.6%. ENPH +3.5%. CSUN +3.7%. RGSE +11.3% (announced a new Hawaiian deal).
    • SolarCity's plans are a positive for equipment vendors GT Advanced (GTAT +1.5%) and Veeco (VECO +1.6%), each of which has seen its solar orders plummet thanks to the capacity glut.
    • Solar ETFs: KWT, TAN
    • Yesterday: Solar stocks rally; Deutsche upbeat on YieldCo potential
    | 13 Comments
  • Jun. 16, 2014, 11:05 AM
    • "We are becoming increasingly constructive on the solar sector as we expect further tightening of the solar supply/demand balance and expect increased investor interest driving valuation multiple expansion," says Deutsche, which last month struck a far more cautious tone on the industry.
    • The firm adds it expects "the emergence of 5-6 publicly traded [solar project] YieldCos over the next 12-18 months to act as a robust growth enabler." It has upgraded SunEdison (SUNE +6.4%), which recently filed an S-1 for its TerraForm Power (TERP) YieldCo, to Buy.
    • YieldCo momentum is seen growing ahead of potential 2016 U.S. solar tax credit changes, and greater international activity is expected to start in 2015, as grid parity is reached in more markets.
    • Notable gainers: FSLR +3%. SPWR +4.7%. CSUN +5.2%. SOL +4.8%. RGSE +3.4%. HSOL +3.4%. YGE +3.3%. CSIQ +3.1%.
    • SunPower might also be getting a lift from news of a $200M, 2-year loan program with Admirals Bank to finance U.S. residential solar projects. SunPower has already reached residential financing deals with Google and BofA/Merrill this year.
    • Solar ETFs: KWT, TAN
    | 5 Comments
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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”).
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Sector: Technology
Country: United States
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