Bob55

The Sun Is Not Also Rising Over Solar Stocks

I am just grateful for an up-day today. A small consolation for so many down days but one I'm appreciative of nonetheless.

Reading blogs from Barron's and you will get the sense of dismay and outright outrage at the continuing campaign of downgrades. Today, an UBS analyst cuts estimates on a number of solar stocks -

blogs.barrons.com/tech...

so, yes, there is a sense that there is a campaign to destroy solar just as you mentioned. This is just one in a string of articles appearing on Barron's where respondents have displayed such strong disagreement at the validity of the analyst's estimates. After a while, downgrades will only go so far. When you go week after week downgrading stocks, when does it stop being effective and the market starts saying "Hey, this industry has to be worth more than that!!!". I'm hoping this realization comes soon. Very soon.

The Sun Is Not Also Rising Over Solar Stocks

Stability is something all investors are looking for nowadays, most especially in the solar sector. Perhaps the solidification of an energy policy for the next presidency can finally do that.

The Sun Is Not Also Rising Over Solar Stocks

Thank you, Briando.

The Sun Is Not Also Rising Over Solar Stocks

You'll find the majority of alternative energy investors have a passion for what they're investing in. I'm one of them.

I agree with you only that every investor has to decide when is a good time to jump in. It'll help greatly if they do something about short selling which appears to be rampant market-wide.

While I agree good companies go down in bear markets, good companies can also thrive given the right government help and incentives.

The Sun Is Not Also Rising Over Solar Stocks

Do I believe solar can grow in this time of financial crisis? I most certainly do as the credit crunch is slowly but surely is being addressed worldwide. Maybe I'm in the minority at the moment but I'm putting my belief that what is being done by our government and other governments around the world will work to shorten this worldwide recession if this is indeed what we're heading into. And even while we are in these rough times, do I think solar is going to stop growing altogether, maybe even contract, to account for this beating that solar stock prices have taken? Most certainly not. HiddenStreet has it right when he mentions the multi-year contracts and high cash reserves most company have and, coupled with strong earnings, their fundamentals are strong. In addition to this, the 8-year tax-credit extension WILL be a major factor in growth here in the U.S. even though it's been downplayed or hardly mentioned at all in those analyst's report downgrading the industry. Banks will soon start lending again and solar projects will get funded. Politics, always a major factor in solar, is also hardly mentioned as government mandates may eventually be pushed through at the Federal level depending on what happens this Election Day, or at the very least be pushed at the state level as other states join California to promote alternative energy as an initiative to fight global warming and foster oil independence. Yes, we solar investors have been taking our lumps as of late, and investing in this sector is not for the faint of heart, but I foresee a better, stronger future ahead for the industry and I'm willing to stay in it for the long haul to see it come to fruition. Maybe what it takes is for a great many private investors, big and small, even foundations whose cause is altruistic and believe alternative energy will make a difference for the betterment of the world can start buying up shares instead of the hedge funds that have been wreaking havoc on the market as a whole. Maybe things will stabilize then and turn to the upside but I guess it's wishful thinking. I'm hoping it's not.

The Sun Is Not Also Rising Over Solar Stocks

Solar's drop in recent weeks has less to do with oil and more to do with the credit crunch that has been affecting all industries. Of course, questionable analyst reports downgrading the industry even though almost all companies continue to show strong earnings and strong guidance for the future does not help the situation. Oil and alternative energy will both play big parts in world energy policies. One should not feel threatened by the other. As for solar, I foresee prices coming down, demand up and good growth for many years to come especially as the credit market eases up.