Seeing Value in Solar Stocks

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Includes: KYO-OLD, SHCAY, STP
by: Steven Towns

Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:

HEARD IN ASIA Sun Hasn't Set On Solar Shares In U.S. and Asia [Wall Street Journal]

Summary: Solar energy companies listed in the U.S. and Asia are still trading as much as 50% off their highs from earlier this year. Some analysts, such as those at Citigroup, see an opportunity and point out the 20%-30% expected annual growth rates over the next few years, in spite of falling oil prices, which alternative energy stocks have historically been closely correlated with. Although solar-generated power makes up less than 0.1% of global power supply, it is seen booming as countries subsidize and incentivize renewable energy sources to reduce dependence on heavy polluting fossil fuels. Subsidies will make solar power more cost-effective, and supporters counter critics who say subsidies mask the financial troubles of the industry by pointing out many energy companies are subsidy recipients.
Related links: Citigroup: Solar Power Looks HotAnother Solar Power IPO: Canadian Solar To Try Its Luck on the NASDAQThe Long Case for Solar Powered SunPowerInvestment Thesis: Clean Energy ETFSharp to Supply Solar Panels for "Googleplex"Despite Missed Estimates, Evergreen Solar's Negatives Already Priced InSolar Power Research: Energy Conversion and SunPower are Buys, Evergreen a HoldSolar Stocks Don't Necessary Rebound With Oil: The Short Case on SunPowerSolar Energy's Long Term AppealSeeking Alpha's Alternative Energy Sector
Potentially impacted stocks and ETFs: Kyocera (NYSE:KYO-OLD), Sharp (OTCPK:SHCAY), Suntech Power Hldgs (NYSE:STP), Evergreen Solar (ESLR), SunPower (NASDAQ:SPWR), Energy Conversion Devices (NASDAQ:ENER), DayStar Technologies (NASDAQ:DSTI), PowerShares WilderHill Clean Energy ETF (NYSE:PBW), Companies mentioned not traded in the U.S. include: Motech Industries, E-Ton Solar, Sino-American Silicon Products and Sysgration Ltd of Taiwan, and Hong Kong-listed China Solar Energy Holdings

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