Dreamrider

Profit Taking Could Dim Solar Plays

Where the "blogger" may have a relative point, it must be noted that:

1) These solar operation's strength is in markets where oil-derived economic pressures are far greater than that in the US, i.e.: European Union Countries (remember their big contracts with Spain, France, etc), where a gallon of gas, regardless if oil was $55, or $99.99 per barrel, is the equivalent $5-$7/gallon, even back to 1998!

2) Because of the currency disparity of between the Euro and US dollar, couple to Chinese "hogging" the falling dollar to produce PV's sold to Europeans that pay in Euros...

3) What everyone has been talking about - supply not being able to keep with demand, i.e.: shortage of the primal epoxy required for the production of PV's. So... hmmm... Did Mao resurrect, and multiply his snot in a Christ-like-miraculous fashion, so there is a sudden oversupply of "organic" epoxy? Or is it that the plant being built by HOKU is going to be soooo big that the Pacific Ocean is going from salt water to salty epoxy... Supply demand still applies; low supply of epoxy = higher prices, higher prices for epoxy = higher prices for PV's, higher prices for PV's = greater revenues, unless, of course, all Europeans decide to not use their light bulbs at all in unison, in which case, we should buy stock in Chinese wax candles factories