canb888

Four Chinese Solar Stocks Under Threat from Pollution

You said a lot about "The losses have been staggering..." they are all related to the share prices only not operating losses. You did say nothing about the fact that most of these Chinese solar companies are making lots of profits (not losses). How would their share price fall to zero if they continue to make lots of profits? It looks like you have some problems in your logic. And, by the way, I would love to buy tons of them if they come close to zero.

First Solar and Solarfun May Defy Short-Term Weakness in Solar Sector

You say: "China's exports will be largely wiped out if overseas demand diminishes in the coming years". I don't think you know what you are talking about if you are serious about that statement. Where would Walmart source their products if China stops exporting? How many countries have you been to lately and did you notice how pervasive Made in China products are even in Asia/Africa? Who will replace those products that provide the best price/value ratios? Wiping out China's export is not easily achievable even if you wish and pray for it to happen. Slowdown from recent double digit growth yes, but that will still be growth of say 7% +/-, not a reduction of GDP, not a wipe out. BTW, it is obvious that China will dominate production of PV solar products, nothing would likely stop that from happenning. The best advice would be finding the winners among the Chinese solar names and invest in them rather than bashing them with all types of excuses and analogies.

About the stimulus package, it is new investment that will have a huge multiplier effect on the economy. This is in contrast to the US bailout - which does not add too much new investment but use billions to correct past errors. Bailout barely create any growth if at all. New investment does. Thats' a world of difference when looking at the multi-billion dollar US bailout vs China's $580B stimulus plan. Final note: one dollar buys much more in China than in the US, not only when it comes to labor hours but also on other productive factors. Therefore, the $580B in China will definitely have a much larger impact than the same dollars in the US. You can't always measure things in terms of what it means in the USA. Think international.

The 'Problem' With Solar Companies is Not Really a Problem

The problem with GS is the same as the problem they claim of the solar companies, i.e., "They need to continue to make money in order to repay their debts. It's that simple."

Who can say that is not also true for GS. If GS stop making money, how can they repay their debt? Based on that, should we all start to short GS? It's becoming ridiculous.