Van Gastel

Want Solar Panels? China Will Pick Up the Tab

You can talk this up as much you like, there are no details, no timing. The report is too good to be true, it doesn't even make much economic or environmental sense, so it will turn out to be just that. It almost looks like "the plan" is only intended to make the solar companies fat, to create this shareprice runup. Now it's just waiting for who is going to head for the exits first, for any reason, general downturn, this or that "worse than expected", falling oil prices, taking profits etc. Volume simply indicates that we have a near term top, an overreaction, which will eventually be corrected, so move with extreme caution.

Solar Grade: A Silicon Revolution

Great article. Eagerly look forward to your next article.

Like mistermaumau I see this rather as validating the silicon solar panel technology, not really a traditional paradigm shift as it is not a new technology replacing another. Makes the outlook for FSLR look very bleak, so why do they still get these high ratings.

Also my comment on the oil prices. The "falling" oil price (very relative) is seen as tempering demand for panels, but all I really see is shipping costs for panels from China coming down...

Regards

Solar Stocks Continue to Roll

Himanshu,

Understand your regret, but just be happy, and wait for the next opportunity, if there is one, rather than getting burned by running behind the facts. Going short is a very bad idea with these very volatile Chinese stock with a very big potential. Sit tight, and don't miss out the ride on the next leg of the bull run. If you really don't want to miss out, and you feel it's really going to go down, take a smaller position now and load up as it goes down. Point is, long is the only strategy here, unless we're in the stratosphere with PE's of well beyond 30+. CSIQ and SOLF are still around 10, way to go.

You could also short the higher PE shares like STP and FSLR and load up on the lower PE shares like CSIQ and SOLF. That way you're hedged, but you'll miss out on a lot of potential. But you know what, if you dare to go short, that show's you have a lot of courage, and this is really a chicken strategy, so follow the marbles strategy and go all out for the +.

I'm long CSIQ (from 19) and SOLF (from 18!), and boy, you need nerve to just sit tight and do nothing, but I'm convinced CSIQ is going much higher, only, it may be too soon. I'm looking for signs of the entire Chinese shares correction to shows signs of abating. I don't think it's far off, perhaps one more leg, but not more than that. If there is another leg, (hope not!) then make sure you're on the train. SOLF is another story, they caught me with a dilutive share action. Even so, I'm still looking for 20+.