Michael L

Profit Taking Could Dim Solar Plays

On a short-term valuation basis, I agree the solars have about as much substance as sunshine. I would, however, be hesitant, to short them. There is something just short of a mania at work here, but remembering how ridiculous the dot coms got before people came to their senses, it makes me queasy to think what could happen to holders of short positions. I don't think investors have recognized how insane some of this is. When a solar company rises 10% on the news that it has secured a supply of silicon, it tells me that investors are dabbling in something akin to a tulip mania. It is equivalent to GM soaring because it has announced that it bought some steel.