NOWHEREMAN

Solar Stocks: Cutting Back on Three Names

When technicals are ignored, fundamentalists have their heads handed to them. And since when do fundamentals include speculation on who may buy whom?

In reality, while a rising tide may lift most ships, the falling tide will ground all ships.

Take FSLR, Lets say they double earnings by 2010. Or better yet, earnings are projected to grow to $5.00, (I saw this type of pie in the sky hype during the Internet Bubble), that puts the current P/E into the mid-fifty area. Show me any analyst who can project earnings that far out with accuracy.

All stocks have subprime connections since they will be the ones that will be sold to atone for the sins in the Financial Sector.

Let me give you an example, Major US city and a major earthquake in that city. All types of insurers drop like rocks...the stock market drops like a rock also. The Insurerers will dump assets to raise capital for perceived liabilities. They will all try to get as much as they can. The only asset class that may buck the trend might be those which would be involved in the reconstruction. Otherwise, it would be like 9/11 revisited but much larger.

There is no safe sector in a Bear Market. Come the fourth qtr., Mutual funds will either have sold or will begin selling in earnest to provide a better picture of their performance.

The above is also speculation but speculation based on what has happened in real Bear Markets in the past.

Good luck to you all, the signs are well lite, ignor them at your own peril.