sirfisup

Solar Stocks After Earnings: Suntech Up, ReneSola Down

David you have it wrong. STP is the big fish in the supply chain. Suppliers have benefited solely upon the fact that silicon has been hard to come by and the prices have remained high. Silicon prices are expected to come down significantly and what you don't know is that STP has a game changing technology called Pluto which can convert low grade silicon to higher grade silicon of which will further reduce their costs and drastically improve GM's. When silicon is abundant in 2009 Renesola will have to scramle to keep its GM's up for the big fish in the market place will be able to negotiate even better terms than currently exist. Don't get me wrong Renesola will have significant growth in 2009 but without question they will see their GM's drastically reduced from their current levels and that will put pressure on the stock for the silicon business IMHO will be more commoditized than the PV business and in the end it will be the end product manaufacturer who will be the big winner. This is the reason why the large PV manufacturers will have the upper hand in 2009 and 2010 and why STP is in a much better market position with already having contracted for 900MW of silicon for 2009.