by Eric Savitz, Blogger and Columnist, Barron's, Tech Trader Daily
So here’s the crux of the debate on the solar stocks, which today have gained ground for the fourth straight session, posting some impressive cumulative gains after a long, long slide. The bearish view of the stocks is that the challenges facing the sector will continue into the unforeseen future. The bullish view is that that the Obama Administration will pour money into alternative energy, making the U.S. the biggest market for solar installations.
by Eric Savitz, Blogger and Columnist, Barron's, Tech Trader Daily
An early plunge in JA Solar today set off a widespread loss across the industry. Analysts expect solar companies to miss forward earnings expectations at the very least. In a post-earnings conference call, Mehdi Hosseini of Friedman Billings Ramsey characterized the mood in the industry as “near-panic.” Almost every major solar stock suffered double-digit percentage losses today.
by Eric Savitz, Blogger and Columnist, Barron's, Tech Trader Daily
In an unexpected turn of events for solar stocks–which were expecting a major rally in the event of an Obama win–a statement by SunPower yesterday predicted a loss in earnings growth due to a strengthening of the dollar against the Euro. As a result, SunPower, which has always hedged its current exposure, became “under-hedged.” A two-day rally reversed course sharply.
by Eric Savitz, Blogger and Columnist, Barron's, Tech Trader Daily
Solar stocks today have come back to life, with many stocks posting double-digit gains. The gains come as the big Solar Power International trade show gets under way this morning in San Diego. The solar stocks have been punished in recent weeks by concerns about the potential impact on the industry of tighter credit market conditions, which have overwhelmed the good news of Congressional approval of an eight-year extension of the 30 percent U.S. investment tax credit.
by Eric Savitz, Blogger and Columnist, Barron's, Tech Trader Daily
Solar stocks are trading sharply lower this morning after Goldman Sachs analyst Michael Molnar declared he has become cautious on the solar group, “as less generous subsidies combined with a wave of supply pose a real risk.”
by Eric Savitz, Blogger and Columnist, Barron's, Tech Trader Daily
OK, now what’s wrong? Just yesterday, the ever-volatile solar stocks staged a nice rally, while investors celebrated as the Senate tacked an eight-year extension of the solar investment tax credit onto the incredibly bloated financial bailout bill, which passed last night by a wide margin. The bill now goes over to the House.
by Eric Savitz, Blogger and Columnist, Barron's, Tech Trader Daily
Solar stocks are off to a rousing start this morning after the U.S. Senate last night voted 93-2 to back a tax extender package that includes an 8 year extension of solar investment tax credits. The measure now moves to the House.
by Eric Savitz, Blogger and Columnist, Barron's, Tech Trader Daily
As far as I can tell, the sun is operating normally.
But you might think otherwise judging from this week’s action in solar stocks. The sector, which suffered considerable losses yesterday, today went into freefall, with many names in the sector suffering losses of more than 10 percent. Exactly why investors decided to bail on the stocks today is unclear, but there are a number of factors that appear to be contributing to the current solar scare.
by Eric Savitz, Blogger and Columnist, Barron's, Tech Trader Daily
Solar stocks are having another rough day, one which looks all that much worse with the Dow Jones Industrial Average up well over 200 points. A number of analysts this morning wrote notes on their trips to the recent European solar conference in Valencia, Spain.
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