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US Energy Bill: Solar Stocks Will Feel All the Heat

Take notice of how bad the solar stocks sold off today on much higher volume than yesterday's pop. These are all signs from a lesson taught during the dotcom bubble.

I find it interesting that this article has brought the most criticism although I did not recommend shorting the stocks, ONLY watching them because the US Energy Bill will hurt them. I think this is evidence that people are in super greed mode and can only see the prospects of solar one day displacing fossil fuel. And I do agree that solar holds much promise, but the key is whether it will be Solar 2.0, 3.0, or later that will truly deliver upon our sci-fi visions.

Caveat: I am a trader. From that standpoint, I have not problem buying USO or FSLR. So, if greed keeps pushing solar higher, I will simply wait. I do not care one way or the other. If you want to see my performance, simply take a look at smartguystocks.com. I also work in the energy sector. I am not talking out of the place where the sun don't shine ...

US Energy Bill: Solar Stocks Will Feel All the Heat

I agree that international renewable energy growth has been the key driver for solar. HOWEVER, analysts and speculators have priced valuations on STRONG US demand going forward. Thus, as I noted above, PE ratios of 200 and higher are absurd.

US Energy Bill: Solar Stocks Will Feel All the Heat

That's a great idea! Let's keep our infrastructure dependent on oil (which we can NEVER meet our demand internally) and keep letting the Middle East make a fortune so they can buy our companies with their sovereign investment funds.

Let's start drilling everywhere. Even the great National Parks. Who needs anything besides big oil drilling operations?

If we use our geniuses and business savvy to dominate a renewable energy industry, we will end up a much stronger nation than one that keeps chasing dying markets.

US Energy Bill: Solar Stocks Will Feel All the Heat

I guess you don't understand what happens to a company with a PE of 190 when there's a kink in the growth. Millions of people like you said tech stocks could never fall because the internet was the future. But I am sure that you know better than the CEO's who are all warning that this bill will hurt their companies.

Side notes for your future research: which country is the largest consumer of energy? What happens to industries when their largest customer base slows?