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Will Some Solar Companies Face a Cash Crunch?

The Chinese solar firms are growing 300% a year! That is an amazing growth rate. So of course they are using lots of cash. They realize that if the grow slowly they will not survive as firms. It is a race for market share and toward efficiencies of scale and cost reductions. If they don't find their price reductions they will also need to worry more about competing solar electric technologies.

So as investors we want them to grow as quickly as possible. But of course it is a tightrope.

My sense is that the Chinese government is very supportive of growth and gaining scale needed to dominate the world market.

Am I wrong in saying that the Chinese government will provide resources to companies that start falling off the tightrope?

Relax... seems like this may be a good period to buy solar stocks.