This is a potential game changer for LED stocks and could also very well mark the bottom in these beaten down green energy stocks. Friday China announced it will begin banning the use of incandescent bulbs beginning in less than a year. They will begin banning imports of 100w bulbs Oct 1, 2012, imports of 60w bulbs Oct 1, 2014 and implement a full ban on all incandescent bulbs by Oct 1st 2016 (although this date could be adjusted based on evaluation that year).
It’s estimated that lighting accounts for 12% of electricity use in China and that a ban on incandescent light bulbs will reduce carbon dioxide emissions by 48 million tons every year.
China isn’t the only country phasing out incandescents. Let’s not forget that both the US and the EU will begin phasing them out next year as well. I don’t think I have to tell you.. it’s time to put LED stocks at the top of your watch lists for long term entry points. I’ll have more on this in the coming weeks.
While I’ve been having issues with the data updates on the site over the last week or so, you can still get some good ideas of LED stocks here. My top picks are CREE, AIXG and VECO. Hope to have the data updates restored very soon.